China's National Development and Reform Commission plans to decrease feed-in tariff for PV power-generating stations set up in 2017, with tentative reductions of 31.25% for category 1 areas, 26.14% for category 2 and 23.47% for category 3, according to China-based media reports.
NDRC is expected to finalize rates in November.
Category 1 areas are in the northwestern region, most of the northern region and the Inner Mongolia Autonomous Region, category 2 areas are in the western, southwestern and northeastern regions and the remainder of the northern region and the Inner Mongolia Autonomous Region, and category 3 areas are ones not belonging to category 1 and category 2.
NDRC has set tentative tariffs for distributed PV systems of CNY0.20 (US$0.03)/kWh for category 1 areas, CNY0.25/kWh category 2 and CNY0.30/kWh category 3.
Since PV power-generating stations and distributed PV systems to be completed by the end of March 2017 will be entitled for 2016 feed-in tariffs, the planned reductions are expected to stimulate a rush to complete installation before the end of first-quarter 2017.
| China market: PV feed-in tariffs, 2016-2017 (CNY/kWh) | |||
| Area | 2016 rates | Tentative rates for 2017 | Percentage reduction |
| Category 1 | 0.80 | 0.55 | 31.25% |
| Category 2 | 0.88 | 0.65 | 26.14% |
| Category 3 | 0.98 | 0.75 | 23.47% |
Source: China-based media reports, compiled by Digitimes, September 2016
Article translated by Adam Hwang
