The domestic photovoltaic power plant market ushered in the best time of its history

On August 30th, the National Development and Reform Commission issued the “On the notice of playing the role of the price leverage to promote the healthy development of the PV industry” and the “On the notice of adjusting the additional renewable energy tariff standards and the related environmental tariffs matters, made by the National Development and Reform Commission”. This two notices clearly pointed out that according to the advantages and disadvantages of light resources, the photovoltaic power plant will implement three kinds of regional benchmark electricity price, they are respectively 0.9 Yuan/degree, 0.95 Yuan/degree and 1 Yuan/degree; the subsidy of the distributed PV is 0.42 Yuan/degree. The partition benchmark price policy applies to be recorded (approved) after September 1st this year and be recorded (approved) before September 1st. As for the photovoltaic power plant projects that will be operated after January 1st, 2014, however, there will a 20-year implementation period principle for the benchmark electricity price and the electricity price subsidy. Affected by this, a number of listed domestic photovoltaic enterprises said that their companies have entered into the status of load production.

Xu Xiaojun, the security representative of Risen (300118.SZ) recently told the reporters of the Century New Energy Network that being the only photovoltaic listed company in Ningbo, the company benefits both from the startup and construction of Ningbo distributed photovoltaic demonstration zone and the further implementation of the domestic photovoltaic FIT subsidy policy, the company has achieved full capacity. It is reported that recently, Risen has been on a non-stop shift for 24 hours. Judging from the current orders, this kind of state will continue until the end of the year at least.

It was said by the inside personage that the introduction of “On the notice of playing the role of the price leverage to promote the healthy development of the PV industry”, which has been recently issued by the Development and Reform Commission marks there officially comes the era of Chinese PV’s FIT electricity subsidies. Seeing at present, under this policy, the photovoltaic power station construction investment return is reasonable, and it is even higher. Secondly, the 0.42 Yuan/degree whole electricity subsidy avoids the various kinds of problems appeared in the previous Golden Sun policy, which mainly focused on the investment subsidy in advance. At the same time, it illustrates that the pass way of subsidies is the renewable energy development fund.

Due to the failure of the price policy, there will be an erupt on projects of original accumulation. It is expected that from now on until next year, a large number of projects will be launched. During this time, it will be the best time for the domestic photovoltaic products’ sales and plant construction. However, after a period of rapid development, the national electricity price for the network and the subsidy policy should be lowered one to several times on depth.

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