**Abstract**
Following the expansion of the photovoltaic (PV) industry and the evolution of electricity price subsidy policies, the specifics of the current round of supportive measures for the sector have become clearer. Recently, a major domestic PV company revealed that the National Energy Administration has been conducting research on the implementation of these policies, including potential changes in how projects are closed. If no further complications arise, the new rules will cover aspects such as electricity metering, billing settlement, and tax handling.
The details regarding how electricity generation and costs will be calculated, how tax refunds will be processed, who is responsible for returning taxes, and where they should go remain unclear, creating challenges for companies. According to an executive from a leading PV firm, these issues have been repeatedly raised with regulators. The latest development is that the National Energy Administration has started seeking public opinions on related policies.
During the consultation period, most companies expressed their views on several key areas. For instance, they suggested that electricity metering should include three sets of data: total power generated by the system, surplus power fed into the grid, and actual electricity consumption. Regarding electricity bill settlements, both sales revenue and subsidy income would be transferred monthly to the project owner’s bank account. On the issue of tax exemptions, many companies recommended that the subsidy portion of grid-connected electricity be exempt from taxes. Additionally, they proposed that distributed systems owned by individual users receive tax-free benefits, while those owned by enterprises should see a 50% reduction in tax burden.
**The Final Rules Will Shape the Future**
Although the policies currently being developed appear to apply broadly, once finalized, PV power plant operators are expected to benefit the most. This trend is evident from recent policy updates over the past two months. In July, the long-awaited PV tariff subsidy policy was officially released, implementing a benchmark grid price policy for PV power plants—far exceeding industry expectations. Just before the National Day holiday, the Ministry of Finance issued a notice on the value-added tax (VAT) policy for photovoltaic power generation, offering a 50% reduction in VAT for taxpayers selling solar-generated electricity. According to industry estimates, this tax cut could increase the internal rate of return for PV projects by 1–2%.
**PV Giants Gain from Strategic Moves**
It seems the government is actively opening up the domestic downstream market. Since the second half of the year, several anticipated policies have been rolled out, many surpassing industry expectations. As a result, companies have become more motivated to expand into the power station business. Yingli, a major player in the PV sector, noted that while operating power stations can be highly profitable, it requires significant capital investment. Many PV giants were hesitant to get involved. However, after the introduction of the national stimulus policy, the company developed a new financing model—essentially “using the bank’s money to do its own thing.â€
In this model, the PV power development company acts as the borrower, applying for loans from banks. To ensure timely funding during construction, the company partners with a trust company, which then works with the bank to disburse funds directly to the project company. After project reviews and approvals, the money flows smoothly into the project. Additionally, the insurance company plays a role in the process, and once insured, the power station’s output is mortgaged to the bank. This approach allows the company to reduce capital usage and gain a stronger market position.
**Recent Policy Highlights for PV Development**
- Several opinions from the State Council on promoting the healthy development of the PV industry, issued on July 15.
- On July 24, the Ministry of Finance issued a notice on distributed PV power generation under the power subsidy policy.
- On August 20, the National Energy Administration released a notice on the construction of demonstration areas for distributed PV applications.
- On August 30, the National Development and Reform Commission issued a notice to promote the healthy development of the PV industry through pricing mechanisms.
- On September 28, the National Energy Administration announced guidelines for large-scale application of distributed PV.
- On September 29, the Ministry of Finance issued a notice on the VAT policy for photovoltaic power generation.
These policies signal a strong commitment from the government to support the growth of the PV industry, with clear benefits for both developers and investors.
Polycrystalline Panel,Polycrystalline Solar Module,Polycrystalline Solar Panel Price,Best Polycrystalline Solar Panels
Jiangyin Haoxuan Technology Co., Ltd. , https://www.haoxuan-tech.com