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NDRC unveils 2019 Feed-in-Tariff Levels for PV Projects

Translated by PV Guangzhou Committee
It was reported that the National Development and Reform Commission (also NDRC) announced the levels of solar FIT payments, including residential solar system: RMB 0.18/per KW.h, Region One (resource-rich regions): RMB 0.40/per KW.h; Region Two (low-and-moderate-resource regions): RMB 0.45/per KW.h; Region Three (energy-constrained regions): RMB 0.55/per KW.h.
To guide new energy investment, utilize resources efficiently, promote fair competition and the sustainable development of PV solar power, the pricing mechanism for on-grid solar system should be further improved. The details of NDRC pronouncement are as follows:
The pricing mechanism for centralized on-grid solar systems
First, transform the benchmark price for concentrated solar power station into guidance FIT price. Given the technology development and other factors, the payment levels for newly-added centralized PV power stations in Regions 1-3 were decided: Region 1: RMB 0.40/kWh,Region 2: RMB 0.45/kWh and for Region 3: RMB 0.55/kWh. These rates are inclusive of taxes.
Second, in principle, the benchmark prices for concentrated power stations can be determined by auction, but the final price is not allowed to surpass guidance price. If the price set by market is less than or equal to the local on-grid price for coal-fired units, operators can pay through local provincial grids, and if surpassing, the National Renewable Energy Development Fund will offer subsidies for them.
Third, if the concentrated solar power stations with determined projects that were included in 2019 FIT subsidy budget but yet to set price connect to grid before June 30th, 2019, the connection charge shall be set as what is specified in Notice on 2018 PV solar Power. If connecting after July 1st, the operators shall be charged as is required in this Notice, namely, the guidance price.
Fourth, the guidance level for poverty alleviation project have remained unchanged at RMB 0.65/kWh for Region 1, RMB 0.75/kWh for Region 2 and RMB 0.85/kWh for Region 3.
Subsidy cuts in newly-added distributed solar power system
First, Commercial and Industrial (C&I) distributed solar PV power projects designed for “self-consumption + excess power feeding back into the grid” are subject to a FIT of RMB 0.10/kWh. However, distributed generation solar PV projects seeking a 100% feed-in mode of operation are subject to the same FITs applied for centralized, ground-mounted systems. The authorities carry out market-based C&I distributed projects. The rates shall be less than tariff levels at auction and the subsidy shall be lower than RMB 0.10/per KW.h.
Second, residential solar PV systems, for self-consumption + excess power fed into the grid, or 100% feed-in will be entitled to FIT of RMB 0.18/kWh and are included in the 2019 FIT subsidy budget.
Third, provinces are encouraged to support the development of PV solar industry.
The policy will become effective from July 1st, 2019.
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