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Industrial and commercial photovoltaic support subsidies

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Industrial and commercial photovoltaic support subsidies [PDF]

6 FAQs about [Industrial and commercial photovoltaic support subsidies]

How does the US government subsidize the PV industry?

The US government uses an investment tax credit (ITC) program to subsidize the PV industry with a 26% tax reduction for investing in equipment costs in 2020 (Pickerel 2015 ). Given the encouragement of government subsidy policies, the PV industry has experienced strong growth in recent decades.

Does supply-side oriented subsidy policy support PV industry?

To rescue enterprises, but not the market, a different subsidy program is required to support PV industry. The supply-side oriented subsidy policy provides the answer through directly and moderately subsidizing PV enterprises and their supply chains.

What is the gap of subsidy in the PV industry?

Statistics reveal that the gap of subsidy in the PV industry reached 60 billion yuan in 2018. If no measures are taken, the subsidies for PV industry may reach 250 billion yuan by 2020. The renewable subsidies in a number of countries show the reduction trends with the increasing years, examples include Germany and the U.S..

Can commercial PV system investors get a subsidy in China?

Tighten measures are inevitable. In the background of PV subsidies reduction globally, commercial PV system investors can only obtain 0.2—0.6 CNY/W (about 5,755—17,266 USD/unit) subsidy from local government in China, according to subsidy policies for commercial PV systems in China provinces and cities in 2019 (GoodWe Solar Academy 2019 ).

Are subsidies causing overcapacity problems in photovoltaic supply chains?

In the past decade, subsidy policies aimed at demand-side of photovoltaic (PV) supply chains have created a dilemma. While they foster the growth of the PV industry, they also induce overcapacity problems to the society. As a result, many governments have cut back subsidies to PV system users.

Should PV subsidy program design focus on long-term benefits?

Thus, the PV subsidy program design should focus on long-term benefits by implementing a technology-neutral incentive to reduce carbon emissions from electricity generation and maintaining a stable and sustainable development of PV industry, rather than short-term savings on budgets.

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