China will continue to support solar PV development and will not stop subsidizing the PV sector in the following 8 to 10 years, according to Liang Zhipeng, deputy director with department of new energy and renewable energy under the National Energy Administration (NEA).
Speaking at 2015 China PV Summit on Monday, Liang said that the government will not stop subsidizing the PV sector but would shift the subsidy focus to distributed PV development to expand distributed PV capacity. PV power generation especially distributed PV will maintain speedy development in 2016-2020 period and China will work to improve energy conversion efficiency while cutting PV system cost below 5 yuan/watt by 2020, according to Liang.
The promised subsidy further strengthened market confidence on PV development after the NEA announced to raise PV construction scale for 2015. Earlier the NEA released a notice to raise the nationwide PV power station construction scale for 2015 by 5.3 million kw. The added capacity is in line with the industry recovery shown this year, and might weight on market expectation that development target for the 2016-2020 period is likely to be raised higher, experts say.
China's PV industry is to achieve industry upgrade in 2016-2020 and will shift focus from scale expansion to quality and efficiency improvement, Liang said.