Recently, the National Development and Reform Commission issued the "Notice on Pricing Policies for Photovoltaic Power Generation Projects in 2018" (hereinafter referred to as the "Notice"). In 2018, the benchmark photovoltaic power station price was lowered by 0.1 yuan/kWh year-on-year, and the level of the January 23 type resource zone was reduced by 15 %, 13%, and 12%, distributed PV subsidy was lowered by 5 cents/kWh, and the rate of reduction was 12%, both less than market expectations.
The National Development and Reform Commission emphasized that distributed photovoltaic power generation projects will exempt various government funds and additional, system spare capacity charges and other related grid service fees levied with electricity prices from the use of electricity. Encourage local governments to carry out photovoltaic power generation in accordance with the relevant regulations of the country to reduce the price of electricity distribution and pilot market-based tender pricing, and gradually improve the mechanism for discovering prices through the market.
“The aforementioned fee-free provision, coupled with 'sales of power at the partition wall', is officially launched next year. It is expected that the 'spontaneous use' of the installed capacity will significantly increase in the future, and the yield rate will also increase significantly,†said Deng Yongkang, a new energy researcher at Anxin Securities.
“From the announcement of the subsidy withdrawal mechanism, the silicon wafer material end and the battery module end will have advance advancements in terms of efficiency improvement and reduction in the cost of electricity. The Dragon Skull Dry Enterprise will lead the advancement and be the first to enter the cheap Internet. “Lu Jinbiao, vice president of GCL-Poly Energy Holdings Limited, said.
Deng Yongkang also believes that with the rapid decline in the cost of photovoltaic systems and the release of production capacity, it is expected that the industrial chain prices will fall by a certain margin next year, and the system cost is expected to drop to 5 yuan per watt. The decline in operation and maintenance costs and financing rates, tax incentives such as value-added tax, and improvements in the number of hours of power generation due to the improvement of abandoned optical power cuts will accelerate the arrival of the era of photovoltaic parity Internet access.
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