The State Council prohibits local protection of the photovoltaic industry

The meeting of the State Council pointed out that in recent years, China's photovoltaic industry has developed rapidly, with a serious surplus of production capacity, and the market has relied excessively on external demand. In order to fully play its role as a market mechanism, government intervention has been reduced and local protection has been banned.

On the 19th, Premier Wen Jiabao chaired an executive meeting of the State Council to study and determine policies and measures to promote the healthy development of the photovoltaic industry.

The meeting held that China's photovoltaic industry has developed rapidly in recent years and a relatively complete photovoltaic manufacturing industry system has been formed. The current major problems are: a serious overcapacity, over-reliance on external demand, and general business difficulties.

The meeting emphasized that the photovoltaic industry is a strategic emerging industry. The development of the photovoltaic industry is of great significance to adjusting the energy structure, promoting the reform of energy production and consumption methods, and promoting the construction of ecological civilization. The current difficulties faced by the photovoltaic industry in China are both a serious challenge to the development of the industry and an opportunity to promote industrial adjustment and upgrading. In particular, the cost of photovoltaic power generation has dropped significantly, providing favorable conditions for expanding the domestic market. In accordance with the ideas of innovation in institutional mechanisms, improvement of policies and measures, expansion of consumer markets, regulation of market order, promotion of industrial restructuring, and reduction of the cost of power generation, we must make overall plans and take comprehensive measures to improve our industrial competitiveness.

The meeting identified the following policy measures:

(I) Accelerate industrial restructuring and technological progress. We will make good use of the market's "forced mechanism" to encourage mergers and acquisitions, eliminate backward production capacity, and improve the level of technology and equipment. Strictly control the new polysilicon, photovoltaic cell and component projects that simply increase production capacity.

(b) Regulate the order of industrial development. Strengthen the coordination of photovoltaic power generation planning and supporting power grid planning, and establish a simple and efficient grid-connected service system. Establish and improve a system of technical standards, strengthen market supervision, and implement compulsory inspection and certification systems for key equipment.

(III) Actively develop domestic photovoltaic application market. Efforts will be made to promote distributed photovoltaic power generation, encourage units, communities and families to install and use photovoltaic power generation systems, and promote the construction of photovoltaic power plants in an orderly manner. Strengthen international cooperation and consolidate and expand the international market.

(D) improve the support policy. According to the resource conditions, the sub-regional benchmark price for photovoltaic power stations will be established, and the distributed photovoltaic power generation will be subject to the subsidy policy, and the on-grid tariffs and subsidy standards will be reasonably reduced according to the changes in costs. Improve the mechanism of central government finance to support the development of photovoltaics. The photovoltaic power station project implements the same VAT preferential policies as wind power.

(5) Give full play to the role of the market mechanism, reduce government intervention and prohibit local protection. We will improve the pricing mechanism for electricity pricing and the evaluation mechanism for the effectiveness of subsidies to improve the policy effect. Play the role of industry organizations, strengthen industry self-discipline, and guide the healthy development of the industry. The meeting requested all relevant departments to quickly formulate and improve supporting policies to ensure that they are in place.