The abstract of the subsidy rules is expected to be released before the end of September. According to a Shanghai Stock Exchange reporter, a source familiar with the Sino-European PV anti-dumping case confirmed that China and the EU have reached a preliminary agreement on price commitments. The agreed floor price for Chinese photovoltaic modules exported to the EU is 0.57 Euro/Watt, which could help Chinese manufacturers avoid the high punitive tariffs of 47.6%.
This development comes just days after the State Council announced the “National Six Articles,†a policy aimed at boosting domestic solar energy growth and opening up new opportunities in the local market. Industry insiders also revealed that detailed subsidy policies for photovoltaic power generation are expected to be unveiled within the next two months. For top-tier Chinese PV companies with significant exports to Europe, this is a welcome relief and a double benefit.
According to insiders, the agreement sets a two-year term for the price commitment, with the goal of resolving the entire anti-dumping issue by the end of 2014. European media reports suggest that negotiations between China and the EU are nearing a resolution on both the minimum selling price and annual import quotas for Chinese solar products. Earlier discussions had started at 0.55 Euro/Watt, but recent concessions from both sides indicate progress.
Even if the final agreement isn’t reached by August, Chinese producers may choose to pause imports until the deal is officially announced. Both parties are now moving closer to a mutually acceptable solution. If no agreement is reached, the EU was set to impose an average 47.6% tariff on Chinese PV products starting August 6.
While some companies still find the 0.57 Euro/Watt floor price challenging, it’s widely seen as a better alternative than facing the full punitive tariffs. Most industry players are eager to avoid a failed negotiation, as the outcome has significant implications for their business.
Analysts believe that if an agreement is reached, it will be a major positive for large PV companies with substantial European exports. Achieving the price commitment would reduce the likelihood of resuming high anti-dumping duties, benefiting the overall market. A Guojin Securities analyst noted that 0.57 Euro/Watt is close to the original 0.55 Euro/Watt proposal from China, while the EU initially asked for 0.65 Euro/Watt. This price level is near the cost line of European manufacturers, who typically sell at 5-10% higher than Chinese products.
Although this price may slightly reduce the competitiveness of Chinese modules in Europe, large manufacturers are expected to maintain their shipments, as smaller producers may exit the market, leading to improved profit margins.
During the height of the trade tensions, the State Council introduced the “Several Opinions on Promoting the Healthy Development of the Photovoltaic Industry,†raising the 2015 installation target from 20GW to over 35GW. It also emphasized expanding distributed solar projects, curbing overcapacity, improving grid infrastructure, and enhancing subsidy and pricing policies.
Industry sources confirmed that the subsidy and electricity pricing policies outlined in the “Opinions†involve multiple institutions, including financial bodies and the State Grid. These regulations are currently under active development and are expected to be finalized before the end of September.
Additionally, more than 40 photovoltaic power generation standards submitted by the Photovoltaic Power Generation and Industrialization Standards Promotion Group are being reviewed. Industry researchers believe that building a strong standardization and certification system will help regulate the domestic PV industry, accelerate the elimination of outdated capacity, and support the growth of leading enterprises.
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