China unveils boost for 2021 renewable subsidies, solar wins biggest share

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Renewable subsidies in China will jump by just under 5% next year. Image: Fotopedia.

China’s Ministry of Finance has revealed subsidies for renewable energy in the country will increase by nearly 5% next year.

A notice issued by the ministry late last week confirmed that subsidies for renewable energy projects in the country in 2021 will total RMB5.95 billion (US$900 million). 14 provinces (including autonomous regions and municipalities) such as Shanxi, Inner Mongolia, Jilin, Zhejiang, Hunan, Guangxi, Chongqing and Xinjiang, are to receive the grants.

Among them, Inner Mongolia will receive the significant majority of the funding, receiving RMB5.10 billion (US$775 million) alone.

The grants are distributed to different generation categories and solar will receive the largest pot. The complete pot allocation is detailed below.

Wind Solar Biomass Independent System of Public Renewable Energy
RMB2.311 billion RMB3.384 billion RMB59.7 million RMB198 million

The notice stipulates that power grid enterprises shall strictly follow the Method of Fund Management to prioritise full-amount grants to national poverty-alleviation solar projects, distributed projects owned by natural persons with installation sizes less than 50kW, solar projects determined through bidding in 2019, and new projects approved in 2020 by the principle “expenditure determined by revenue”, when appropriating the subsidy.

For so-called ‘Top Runner’ projects approved by the state and village-level poverty-alleviation solar stations built by local governments in accordance with the central government’s policies, 50% of the amount due shall be ensured.

The notice also stipulates that local governments shall strictly follow the budget management requirements to transfer the funds to power grid enterprises or those running the independent system of public renewable energy as soon as possible. Funds received for a single project shall not exceed the corresponding amount of the reasonable service hours specified by National Development and Reform Commission.

It is worth noting that the notice is only for budget of additional subsidy for renewable energy in 2021, not a notice of money issuance. It is clearly said in the notice that “the funds will be appropriated in accordance with procedures once the the budget year of 2021 starts,” with the budget year running 1 January – 31 December 2021.

Read Next

April 16, 2021
There was a more than fourfold increase in corporate solar funding in Q1 2021 compared with the same quarter last year, amid strong demand for PV assets globally, according to new analysis by Mercom Capital.
April 15, 2021
Maxeon Solar Technologies intends to raise up to US$143.75 million through a share issue to help finance planned capacity expansions and R&D, with long-time partner TZS committing to an investment.
April 14, 2021
There is likely to be demand across Europe for producing hydrogen from renewable energy, but the right regulatory frameworks and legislation need to be in place for the green hydrogen industry to find success.
April 13, 2021
Europe’s power networks need to embrace flexibility and whole systems approaches on much larger scales if they are to be capable of accommodating the levels of renewable power necessary to hit 2030 targets.
April 13, 2021
European solar investors are coming to terms with smaller returns, however banks, governments and grid operators could do more to help alleviate risk and ease investor concerns.
April 9, 2021
A draft proposal put forward by China’s National Development and Reform Commission could see subsidies for new solar projects phased out, starting this year.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET
Solar Media Events
May 11, 2021