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China’s Surprising Move To Cut Solar Subsidies


By Robert Rapier,oilprice – Jun 11, 2018, 4:00 PM CDT

Chinese solar companies sold off sharply on Monday following an announcement by the Chinese government that it would take measures that may curb the astronomical growth of its solar industry. The South China Morning Post reported:

“A joint statement put out on Friday by the National Development and Reform Commission, Ministry of Finance and National Energy Administration said the allocation of quotas for new projects had been halted until further notice, and tariffs on electricity generated from clean energy will be lowered by 0.05 yuan per kilowatt hour, a cut of 6.7 to 9 per cent depending on the region, effective June 1.”

The Chinese government indicated that the curtailment was aimed at “promoting the solar energy sector’s sustainable development, enhancing its development quality and speeding up reduction of subsidies.”

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