Tang Xuhui (right) insists soft costs are the
barrier to China reaching grid parity.
The cost of solar technology is no longer a barrier to PV
reaching grid parity in China, according to manufacturer LONGi solar.
The Chinese firm said soft costs related to grid integration,
land and taxation were now the main obstacles for the sector.
“Our main reasons why PV cannot be fully unsubsidized now are
non-technology costs. First, we hope the government can encourage innovation,
give more support to advanced technology products, and promote technological
progress, in order to further reduce the cost of PV,” Tang Xuhui, VP, LONGi
Solar told PV Tech.
In May, Beijing announced the so-called 5.31
New Policy, which effectively halted
deployment of utility-scale solar in its tracks. Only the projects in its Top
Runner and Poverty Alleviation programmes are unaffected. Top Runner projects
are only permitted to use high-spec components.
A consultation is now being circulated by the government that
proposes devolving solar incentives to local governments and promoting greater
cooperation with grid companies. Historically, some Chinese regions’ solar
projects have suffered double-digit percentages of curtailment due to weak grid
infrastructure.
“The purpose of government subsidy is to support the unsound and
imperfect PV industry in the initial stage of development. The ultimate goal of
subsidy is to realize no subsidy, and send clean solar energy to the homes of
the public.
“We hope the government can introduce more incentive and support
policies, provide appropriate relief and preferential policies for PV land use,
PV enterprise tax, for example, and strive to solve the problem of clean energy
absorption by the power grid. This will reduce the non-technology costs and
accelerate the advent of PV grid parity,” Tang told PV Tech during the recent
All Energy Australia event.
“The power grid has played a positive role in promoting the PV
industry, but there is also room for improvement, such as faster
grid-connected absorption. After the release of the 5.31
New Policy, the PV industry needs the
power grid to take more responsibilities and jointly contribute to China’s
clean energy transformation. We hope that all parties can reach win-win
results,” he added.