In order to establish standardize solar PV tariff management and promote sustainable development of solar PV industry, the Chinese government has decided to improve its solar PV tariff policy last month.
After improved, it will develop a unified national solar PV benchmarking on-grid tariff. The unified national benchmarking tariff for non-bidding solar PV projects is formulated based on average investment and operation costs, solar PV plant bidding prices, and solar resources in the country.
1.15yuan/kWh on-grid tariff (including tax, same below) will be applicable to solar PV projects approved before July 1 2011, completed before December 31 2011.
1yuan/kWh on-grid tariff will be applicable to solar PV projects (CNY1.15/kWh for projects in Tibet Autonomous Region) approved after July 1 2011, or approved before July 1 2011 but completed after Dec 31 2011. The NDRC will adjust on-grid tariff in the future according to investment cost variation, technology development, and other factors.
The difference between solar PV project on-grid tariff and local desulfurized coal-fired benchmarking on-grid tariff will continue to be paid by national renewable energy tariff addition, according to Trial Method for Renewable Energy Tariff and Cost Sharing Management.
The installation types, regions, or customer types are not definite very clear in the initial policy. In future, grid interconnection terms will be specify on the new policy terms.