The Shandong provincial government has revealed new subsidies for solar projects installed between 2010 and 2012. The province is now actively developing solar ground mounted, rooftop and BIPV power project solutions in order to encourage private capital to enter the photovoltaic power generation field.
The newly announced policy provides systems installed in 2010 with a 10RMB/W subsidy and 1.7RMB/kWh feed-in tariff for up to 50MW of installations (38MW ground, 10MW rooftop, 2MW BIPV). Subsidies for systems installed in 2011 will decrease to 1.4RMB/kWh in 2011 (for 80MW installations) and 1.2RMB/kWh in 2012 (for 150MW installations), reports clean technology industry analyst Barclays Capital.
These provincial programs appear to be just the beginning of the solar developments in China, with the government expected to invite tenders for ~500MW projects in the near future (with tenders for 280MW expected in the next two months). Barclays Capital expects most solar companies to remain supply constrained in 2010, “2011 demand outlook of leading Chinese companies could improve as a result of relatively attractive provincial subsidy programs and potential for national level FiT/tendering process in 2011,” said Barclays senior analyst Vishal Shah.
Shandong Province has ideal conditions for the use of solar power, with average annual sun hours reaching almost 2500. To date, the province operates 11 solar energy generation projects, with a combined capacity of 3.165MW. Currently, eight solar projects are under construction, totaling 23MW, with production expected by the end of 2010.