Page 7 - SCBJ-201604
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April 2016
brought exceptional pace: from 2010 to 2015, the industry installations. The central government
demand for solar saw an annual growth rate of 2.4 currently provides 20-year subsidies of
power generation. percent, with revenue totaling US$29.8 US$0.06 per kilowatt-hour of output
billion. Over the same period, Chinese from solar rooftop projects. For surplus
Environmental solar cell output has been increasing by power, RMB 0.40 per kilowatt-hour
consciousness and 21.3 percent per year, with an estimated is awarded from the state grid, for any
pollution problems output of 27.6 gigawatts in 2015. surplus power they generate.
have also contributed
to the want to shift Polysilicon solar panels are the most The National Energy Administration
from a reliance on popular choice, as they are relatively aims to deregulate the electricity market
imported fossil fuels cheaper and take less energy to produce. for small distributed solar generation,
to renewable energies. They accounted for the majority of the including rooftop projects. Projects
Under the twelfth five- solar panel segment, making up 56.8 producing fewer than six megawatts of
year plan, the State percent of total industry revenue in 2015. energy are exempt from the application
Energy Administration However, the conversion efficiency rate of a power generation license. Since
made aims to of polysilicon solar panels is only about 2014, a streamlining of payments and
increase solar power 12.0 percent, whereas monocrystalline, subsidies has existed to aid solar projects
generation capacity which accounted for 28.6 percent of undertaken by individuals and private
from 860 megawatts total industry revenue in 2015, converts enterprises. Industrial and commercial
to 21 gigawatts. between 15 and 24 percent. entities setting up solar rooftop projects
However, China’s It is estimated that over 90 percent of are offered a payback period of 7-9 years
solar power resources China’s territory has the potential to with an eight percent return rate.
and infrastructure support some
are fragmented, and Future Outlook
a more cohesive and form of solar power generation, and
developed distribution although China is the world’s leading Two factors are combining to incentivize
network will be solar panel manufacturer, over 95 the Chinese government to strengthen
required to efficiently percent of its panels are exported. the solar panel industry: increasing
utilize its solar power awareness of environmental pollution,
generation capability. Government Incentives and concerns over power supply and
generation. While large solar power
Solar Panel Corporate investment in solar markets in Europe such as Germany and
Manufacturing installations is met with generous Italy begin to reduce subsidies for solar
policies and incentives. In 2013, the panels, endorsement in Beijing looks
China’s solar panel Chinese government introduced new set to make China not only the leading
manufacturing feed-in tariffs (FITs), deployed at both manufacturer of solar panels, but also
industry has also been state and provincial levels to fuel the the leading buyer.
developing at a fast growth of distributed solar rooftop
Since its establishment in 1992, Dezan Shira & Associates has been guiding foreign
clients through Asia’s complex regulatory environment and assisting them with all
aspects of legal, accounting, tax, internal control, HR, payroll and audit matters.
As a full-service consultancy with operational offices across China, Hong Kong,
India and emerging ASEAN, we are your reliable partner for business expansion in
this region and beyond.
For inquiries, please email us at info@dezshira.com. Further information about
our firm can be found at: www.dezshira.com.
5
brought exceptional pace: from 2010 to 2015, the industry installations. The central government
demand for solar saw an annual growth rate of 2.4 currently provides 20-year subsidies of
power generation. percent, with revenue totaling US$29.8 US$0.06 per kilowatt-hour of output
billion. Over the same period, Chinese from solar rooftop projects. For surplus
Environmental solar cell output has been increasing by power, RMB 0.40 per kilowatt-hour
consciousness and 21.3 percent per year, with an estimated is awarded from the state grid, for any
pollution problems output of 27.6 gigawatts in 2015. surplus power they generate.
have also contributed
to the want to shift Polysilicon solar panels are the most The National Energy Administration
from a reliance on popular choice, as they are relatively aims to deregulate the electricity market
imported fossil fuels cheaper and take less energy to produce. for small distributed solar generation,
to renewable energies. They accounted for the majority of the including rooftop projects. Projects
Under the twelfth five- solar panel segment, making up 56.8 producing fewer than six megawatts of
year plan, the State percent of total industry revenue in 2015. energy are exempt from the application
Energy Administration However, the conversion efficiency rate of a power generation license. Since
made aims to of polysilicon solar panels is only about 2014, a streamlining of payments and
increase solar power 12.0 percent, whereas monocrystalline, subsidies has existed to aid solar projects
generation capacity which accounted for 28.6 percent of undertaken by individuals and private
from 860 megawatts total industry revenue in 2015, converts enterprises. Industrial and commercial
to 21 gigawatts. between 15 and 24 percent. entities setting up solar rooftop projects
However, China’s It is estimated that over 90 percent of are offered a payback period of 7-9 years
solar power resources China’s territory has the potential to with an eight percent return rate.
and infrastructure support some
are fragmented, and Future Outlook
a more cohesive and form of solar power generation, and
developed distribution although China is the world’s leading Two factors are combining to incentivize
network will be solar panel manufacturer, over 95 the Chinese government to strengthen
required to efficiently percent of its panels are exported. the solar panel industry: increasing
utilize its solar power awareness of environmental pollution,
generation capability. Government Incentives and concerns over power supply and
generation. While large solar power
Solar Panel Corporate investment in solar markets in Europe such as Germany and
Manufacturing installations is met with generous Italy begin to reduce subsidies for solar
policies and incentives. In 2013, the panels, endorsement in Beijing looks
China’s solar panel Chinese government introduced new set to make China not only the leading
manufacturing feed-in tariffs (FITs), deployed at both manufacturer of solar panels, but also
industry has also been state and provincial levels to fuel the the leading buyer.
developing at a fast growth of distributed solar rooftop
Since its establishment in 1992, Dezan Shira & Associates has been guiding foreign
clients through Asia’s complex regulatory environment and assisting them with all
aspects of legal, accounting, tax, internal control, HR, payroll and audit matters.
As a full-service consultancy with operational offices across China, Hong Kong,
India and emerging ASEAN, we are your reliable partner for business expansion in
this region and beyond.
For inquiries, please email us at info@dezshira.com. Further information about
our firm can be found at: www.dezshira.com.
5
