China Scales Back Renewable Energy Subsidies After Record Solar Installations
China's National Development and Reform Commission (NDRC) announced steps to reduce subsidies for renewable energy projects following a surge in solar and wind installations.
In 2024, China surpassed its own records for new solar installations with a 45% increase from the previous year. With 887 GW of installed solar power, China now boasts over six times the capacity of the United States, according to the International Renewable Energy Agency.
This rapid expansion led China to достичь its 2030 target six years ahead of schedule, highlighting the pace of its clean energy transition. The move comes at a time when the United States has withdrawn from the Paris climate deal under President Donald Trump.
The NDRC and China's energy administration have implemented "market-oriented" policy changes to encourage clean energy projects. However, the NDRC stated that the cost of developing new energy has decreased significantly, making it feasible to reduce subsidies.
Projects completed after June 2025 will receive payments based on "market-based bidding." The NDRC emphasized that there will be no impact on prices for residential, agricultural, or industrial/commercial users.
The NDRC will collaborate with local governments to implement the plan, while specific pricing formula details are yet to be released.
The reduced subsidies may impact China's solar industry, which has faced overcapacity and declining solar panel prices. This could potentially lead to financial difficulties for smaller producers.