October 11, 2018 Source: Sunshine Craftsman Photovoltaic Network

On October 8, the Price Department of the National Development and Reform Commission organized a symposium on photovoltaic power price policy, discussed with some enterprises the impact of the 531 New Deal on the photovoltaic industry, and analyzed the next policy direction.

At the meeting, the development of distributed photovoltaics was the focus of attention of all parties. After the 531 New Deal, the enterprises suffered heavy policy losses, in which the subsidies were seriously delinquent and the indicators were all swayed, resulting in a poor investment environment, which led to difficulties for large and small manufacturers. A number of corporate leaders have called on the relevant departments to release the household indicators - "Without heavy volume, there is no way to start work." Discuss and understand the construction cost of different types of PV projects such as ground power stations, industrial and commercial, and household photovoltaics, and provide a basis for the subsidy standards for 2019.

The release of renewable energy subsidy funds is also a major focus of the meeting. Regarding the payment method and payment time of the stock subsidies, representatives of various enterprises have communicated with relevant leaders. Regarding the "531 New Deal to reduce the impact of subsidies", the views of various companies have reached an agreement: in the case of subsidies, the real touch is the practice of "quick braking" to limit the scale. The leaders of the price department expressed their understanding, and soon on October 9, the National Development and Reform Commission, the Ministry of Finance, and the National Energy Administration jointly issued the Notice on the Relevant Matters Concerning Photovoltaic Power Generation in 2018. The notice was clear: May 31 this year (Including) The legally compliant household natural person distributed photovoltaic power generation project that has been filed, started construction, and put into operation before June 30 this year (inclusive), is included in the scope of nationally recognized scale management, benchmarking on-grid electricity price and The tariff subsidy standard remains unchanged (subsidy 0.37 yuan / kWh, financial subsidies for 20 consecutive years).

It is worth noting that the industrial and commercial projects issued in this document did not give a buffer period. Obviously, the separate management of household and industrial and commercial scales will become a new trend in the future. As for the relevant enterprises, the “control of PV indicators for household use” can be obtained. Support from the competent authorities depends on the next policy direction.

According to the past practice, the policy documents on PV subsidy price adjustment are issued at the end of December each year, and the draft for comments is generally issued around the 11th. After two months of consultation, it is officially issued. Therefore, this meeting focused on the issue of subsidy intensity in 2019. It is expected that the "2019 Photovoltaic Power Project Price Policy Consultation Draft" will be issued soon.

The industry believes that this policy is a callback to the "531" PV New Deal brakes, and it is expected that the PV industry policy in 2019 will undergo no small changes.

First, subsidies will continue to decline, but the decline will slow down; second, subsidy prices and methods will be more flexible, and it is likely to be further developed to quarterly units; third, subsidy arrears will be clearly resolved.

Industry insiders predict that there will be four changes in 2019:

1. Distributed subsidy of 0.2 yuan / kWh next year;

2. Benchmark electricity price: 0 yuan for the first category, 0.2 yuan/kWh for the second category, and 0.3 yuan/kWh for the third category;

3. The indicator will still control the total amount, which is expected to be 30-40GW in the whole year;

4. Subsidy arrears will still be normalized and there will be no mitigation trend in the short term.

The above content is for reference only, and the specific policy is subject to the final document of the relevant state department.