China Wants to Reduce its Subsidy Budget for New Solar Power Project in 2020

China aims to lower the subsidy budget for new solar power projects from 3 billion yuan in 2019 to 1.5 billion yuan in 2020. It should be noted that two-thirds of this amount will be allocated to large solar projects through a competitive auction process as well as the remainder will be for residential solar systems, according to the National Energy Administration (NEA).

Even though many believe that it is so soon to considerably decrease in the subsidy for new solar and wind projects, the government announced that they aim to do this action to promote the sustainable and healthy development of the new energy industry. In other words, to make renewable energy competitive with other power sources such as coal and natural gas.

The 2019 policy wasn’t announced until July last year, creating uncertainty for developers and caused new installations to slump almost 37% from a year ago, according to Bloomberg. China’s new clean energy policies for 2020 may also drop the annually added capacity more than before.  

———-***———-

Source:@Bloomberg & @Solar_Edition

Photo:@Solar_Edition

……………

‘All rights to go to the author of the news & image as mentioned above’

———————–

See also  Hydrogen-powered Pickup Will be Commercialized by the Upstart Automaker, Nikola Motor