The National Energy Administration (NEA) of China has decided to allocate CNY 3bn (US$435m) of subsidies to new solar power projects in 2019. Most of the subsidies (CNY 2.25bn (US$325m) will be directed to large-scale solar power plants, while CNY750m (US$109m) will be allocated to rooftop projects with a combined capacity of 3.5 GW. The subsidies will be applicable for solar power projects under construction, having submitted applications for subsidies to the NEA by 1 July 2019, and able to connect to the power networks by the end of 2019.
China is setting an annual cap on solar subsidies for the first time, in an attempt to ease a CNY 120bn (US$17bn) payment backlog and to limit the capacity of subsidised solar power projects. The NEA will give priority to subsidy-free solar and wind projects: in April 2019, the NEA and the National Development and Reform Commission (NDRC) approved 250 renewable power projects totalling 20,760 MW in 16 provinces that will be developed without subsidy. In May 2019, the NDRC decided to cut feed-in tariffs (FiTs) for onshore wind projects in July 2019 and 2020 and to remove feed-in tariffs (FiTs) for new onshore wind projects as of 1 January 2021, when grid price parity will apply to all new power generation projects.
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