China Sets 2014 Installation Limits for Solar Power Subsidies

Feb 12, 2014 12:58 am ET

Feb. 12 (Bloomberg) -- China, the world’s biggest solar market, set a national limit of 14 gigawatts for solar power capacity addition this year to be eligible for subsidies.

Within the limit, the country set quotas for individual provinces based on local resources and the grid’s ability to handle the additional power, according to a statement on the National Energy Administration’s website. Projects exceeding a region’s quota won’t get subsidy.

China added a record 12 gigawatts of solar power in 2013, almost matching the amount being generated in the U.S. from the same source, according to data compiled by Bloomberg. The country installed 3.6 gigawatts of solar in 2012, Bloomberg New Energy Finance said last month.

The eastern provinces of Shandong, Jiangsu and Zhejiang received the highest quota of 1.2 gigawatts each, the NEA said.

If grids are unable to absorb the power and solar panels stay idle, the agency may reduce the quotas, especially in provinces such as Gansu, Qinghai and Xinjiang, which have the highest installed capacity, it said.

--Feifei Shen. Editors: Abhay Singh, Madelene Pearson