4 FAQs about About photovoltaic panel subsidy policy

Does China's government subsidy policy promote photovoltaic development?

In the past two decades, China's government subsidy policy has promoted the rapid development of the photovoltaic industry. Concerns have been raised about h...

How can subsidies help the solar panel industry?

The current state of the solar panel industry offers a good illustration of how subsidies can contribute to fuelling continued investment in production capacity irrespective of market conditions.

How does the subsidy program affect PV power generation?

The revenue of PV power generation plants under the subsidy program mostly derives from two sources: electricity sales and government subsidies. Following the reduction of the subsidy, government support is either diminished or entirely revoked, leading to a decrease in the project's overall revenue.

What are the negative effects of governmental subsidies on PV industry?

At the same time, negative effects, like serious oversupply of PV industry, were brought about by these large scale governmental subsidies. Although governmental subsidy strongly supports the China PV companies, few of them have competitiveness in the global market.

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