"Golden Sun" is about to close the PV industry

Abstract Recently, the Ministry of Finance issued the "Notice on liquidation Golden Sun Demonstration Project financial assistance funds," meaning that four years of implementation of "Golden Sun" project coming to an end, the news also revealed China's photovoltaic distributed generation of electricity subsidies is about to adopt . From initial investment subsidies to electricity...
Recently, the Ministry of Finance issued the "Notice on the Financial Subsidy Fund for the Liquidation of the Solar Demonstration Project", which means that the implementation of the "Golden Sun" project for four years is coming to an end. This news also reveals that China's photovoltaic distributed power generation will soon adopt the subsidy for electricity.

From initial investment subsidies to electricity subsidies

        Since the beginning of this year, with the introduction of the national series of encouragement policies, distributed photovoltaic power generation, especially “roof” photovoltaic power generation has been rapidly developed, and the domestic application situation is very good, which makes the photovoltaic enterprises in the industry development difficulties see a glimmer of life. At the time when the EU's "double-reverse" preliminary ruling results are about to be announced, the industry has also announced that PV distributed power generation will implement the wind subsidy, which will allow people to focus on the "Golden Sun" project that has been implemented for four years.

        In 2009, the Ministry of Finance, the Ministry of Science and Technology, and the National Energy Administration jointly issued the Notice on the Implementation of the Golden Sun Demonstration Project, and decided to adopt comprehensive financial subsidies, technology support, and market-pull methods to accelerate the industrialization and scale development of domestic photovoltaic power generation.

        The characteristics of the initial investment subsidy, self-sufficiency and surplus electricity access adopted by “Golden Sun” have stimulated the enthusiasm of many domestic PV development investment enterprises. The data show that in 2009 alone, more than 100 MW Golden Sun demonstration projects were approved for construction. And after four years, this figure has risen sharply. In 2012, the total size of the approved machines reached 4,54 megawatts.

        Meng Xianyu, vice chairman of the China Renewable Energy Society, said that the Golden Sun's initial investment subsidy stimulated and cultivated the domestic PV power station development and construction chain. After this role was exerted, it was logical to turn to the power subsidy.

        Open a window for domestic applications

        For the first time, “Golden Sun” opened the gate of China's photovoltaic application, which is a beneficial attempt to scale the application of photovoltaic products.

        According to statistics, since 2009, the total installed capacity of the Golden Sun Demonstration Project has exceeded 6,000 megawatts, and the scale has occupied half of the domestic PV application market, which not only helps China's PV industry tide over the difficulties, but also opens up the domestic PV installation market. It will also bring huge energy saving and emission reduction benefits. According to the three types of sunshine cities (3.5 hours of daily average sunshine), the 6000 MW component has a total power generation of about 167.58 billion kWh in 25 years, saving about 2.68 million tons of standard coal and reducing carbon dioxide emissions by about 6.97 million tons. The overall emission reduction benefit is nearly 3.8 billion yuan.

        Driven by the “Golden Sun”, the installed capacity of domestic PV power generation has risen geometrically. In 2012, China became the world's second largest PV installation country after Germany.

        Experts commented that although it was only a short period of four years, the “Golden Sun” project contributed a lot to the development of China's photovoltaic industry. It not only accumulated experience for the development of distributed energy, but also accumulated valuable experience for large-scale grid-connected photovoltaic power generation. At the same time, it has also made useful explorations to promote industrial innovation, accelerate the industry and industry support, localization of materials and equipment, and significantly reduce application costs.

        How to retire

        The direct effect of the "Golden Sun" policy is to launch the large-scale application of domestic photovoltaic power generation. The deeper significance is to break the entanglement of China's power system to develop renewable energy to a certain extent, making it possible to connect distributed power generation into the power grid.

        With the decline of construction costs, the availability of grid conditions and the maturity of business models, the “electricity subsidy” policy, which has been explored for many years, has finally been implemented. The electricity price subsidy policy is an incentive policy widely adopted in Europe and the United States. It is also one of the main considerations of the government when the domestic market was launched. However, due to the particularity of China's power grid system, the competent authorities have adopted investment subsidies to stimulate the market and improve relevant mechanisms and conditions. After maturity, it is a gradual strategy of subsidizing electricity prices.

        Xu Honghua, director of the Institute of Electrical Engineering of the Chinese Academy of Sciences, said that the investment subsidy and electricity price subsidy policy are different incentives for different stages of industrial development. The convergence of the two policies will ensure the continued growth of the domestic market. In this regard, some PV executives suggested that the country should stay in the Golden Sun Demonstration Project for another three-year delay period. During this period, the electricity price subsidy and the Golden Sun “two-track parallel” can be adopted to further develop the experience of photovoltaic subsidies that are more in line with national conditions.

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