The National Development and Reform Commission ("NDRC") has recently issued the Circular on Matters concerning the On-grid Price Policies for Photovoltaic Power Generation in 2020 (the "Circular"), with effect from June 1, 2020.
The Circular provides for provisions in five aspects, including continuing to set government-guided prices for centralized photovoltaic power generation projects, lowering the subsidy standard for distributed photovoltaic power generation projects in industrial and commercial circles, and endorsing the development of the photovoltaic industry. Among others, the Circular states that the government-guided prices for newly-established centralized photovoltaic power plants in Class I, Class II and Class III resource areas subsidized by national finance will be set at CNY0.35 per KWH (VAT inclusive, the same as below), CNY0.4 per KWH and CNY0.49 per KWH respectively. In addition, it is made clear in the Circular that for distributed photovoltaic power generation projects in the industrial and commercial circles covered by this year's fiscal subsidies, the subsidy standard will be adjusted to be CNY0.05 per KWH and applicable to the gross amount of the generated electricity, if the generated electricity is intended for self-use, with the surplus, if any, to be transmitted on grids; if the power generated from a distributed photovoltaic power generation project in the industrial and commercial industry will be all transmitted on grids, the power price should be set according to the government-guided price for centralized photovoltaic power plants that is applicable in the local resource area. Regards the household-based distributed photovoltaic power generation projects covered by this year's fiscal subsidies, the subsidy standard will be adjusted to be CNY0.08 per KWH for the total amount of electricity generated through these projects.