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Opinions of the State Council on Promoting the Healthy Development of Photovoltaic Industry

Release time:2016-03-21 Print Font size:TT




All provinces, autonomous regions and municipalities directly under the central government, all ministries and commissions of the State Council, and all institutions directly under the state council:


The development of photovoltaic industry is of great significance to adjust the energy structure, promote energy production and consumption revolution, and promote the construction of ecological civilization. To regulate and promote the healthy development of the photovoltaic industry, we hereby put forward the following views:


1.Full Understanding the Importance of Promoting the Healthy Development of Photovoltaic Industry

In recent years, the photovoltaic industry in China achieved rapid development. The photovoltaic cell manufacturing industry has expanded rapidly, and our country has the biggest market share in this industry. Photovoltaic cell manufacturing has reached the world advanced technology level. Polycrystalline silicon smelting technology is becoming mature, and formed a complete manufacturing industry system including silicon materials and silicon wafers, photovoltaic cells and modules, inverter and control equipment. The domestic application market of photovoltaic power generation is gradually expanding, the cost of electricity is significantly reduced, and the market competitiveness is significantly improved.


At present, photovoltaic enterprises in our country all operate difficultly under the influence of multiple factors like Global photovoltaic market demand growth slowed, product export resistance increases, the development of photovoltaic industry is not coordinated, etc. At the same time, China''s photovoltaic industry faces grim situations, such as serious excess capacity and disorderly competition in the market, overdependence on external demand and insufficient development of the domestic application market, weakness of the technology innovation ability and slow development of the key technical equipment and materials, deficiency of the financial support and subsidy mechanism, imperfection on the industry management and application market environment.

 

Photovoltaic industry is the important development direction of global energy technology and industry, a sunrise industry with great development potential, and a strategic emerging industry with international competitive advantage in our country. The current problems and difficulties of photovoltaic industry are the challenges to industrial development, as well as the opportunity to promote industrial restructuring and upgrading. Particularly, the declined cost of photovoltaic power generation provides favorable conditions for expanding the domestic market. We should strengthen confidence, seize the opportunity and continue to explore and innovate, unswervingly promote the sustained and healthy development of the photovoltaic industry.


2.General Requirements

Guiding ideology


Thoroughly implement the spirit of The Eighteenth National Congress of the Communist Party of China, take Deng Xiaoping theory, "Three Represents" importance thought, Scientific Outlook on Development as the guiding ideology, innovate institutional mechanisms to improve the supporting policy, stimulate domestic market demand through the market mechanism and strive to consolidate the international market. Improve standard system, standardize the order of industrial development, and strive to promote industrial transformation and upgrading. Improve the market mechanism, accelerate technological progress, and focus on improving the quality and efficiency of the development of photovoltaic industry to make contribution to enhance the vitality and competitiveness of economic development.  


Basic principle 


Combining the near and far, treating both symptoms and root. At the time of expanding the application of photovoltaic power generation, it should control the general capacity of the photovoltaic power generation, accelerate the elimination of backward production capacity and promote industrial restructuring and technological progress.


Making overall plans and takes all factors into consideration, taking comprehensive measures. Taking factors like domestic and foreign market demand industry balance between supply and demand, and coordination of upstream and downstream into consideration and adopt comprehensive measures to solve the outstanding problems of industrial development.


Supporting and priority should give to market. Play the fundamental effectiveness role of market in promoting the structural adjustment of the photovoltaic industry, selecting the superior and eliminating the inferior, optimizing layout. Implement differentiated treatment for different photovoltaic companies, Focus on supporting the enterprises with high technology and strong market competitiveness, and eliminate inferior enterprises. 


Coordinating and cooperating to form composition forces. Strengthen policy coordination and industry self-regulation, support local innovation and development, mobilize the enthusiasm of local, corporate and consumer, and jointly promote the development of photovoltaic industry.


Development goal 


Take the aim of expanding the domestic market, improving the level of technology, and speeding up the industry upgrading and promoting the sustained and healthy development of the photovoltaic industry as the basic standpoint. Establish the production, sales and service system of photovoltaic products and form the regulations, policies, standards and market environments that beneficial to the sustainable development of the industry. From 2013 to 2015, the average annual increase of installed capacity of photovoltaic power generation shall achieve 10 million kilowatts, and to 2015 the total installed capacity shall above 35 million kilowatts. Enterprise merger and reorganization should be speeded up, poor products and enterprises with poor technology shall be eliminated, and a number of leading enterprises with strong technical research capability and market competitiveness will be fostered. Technological innovation and industrial upgrading should be accelerated, self-supply ability of the polysilicon and manufacturing technology level of the photovoltaic should be enhanced so that to improve the competitiveness of the Photovoltaic industry. 


3.Actively Explore the Photovoltaic Application Market 


Accelerate the merger and reorganization of enterprise. Use the market forced mechanism to encourage enterprise mergers and acquisitions. Strengthen policy guidance and promote the establishment of long-term mechanism and eliminate backward production capacity. Support the development of the polysilicon and photovoltaic cell manufacturing enterprise which have high technology and strong market competitiveness, foster a number of polysilicon manufacturing enterprise with low comprehensive energy and less material consumption and strong international competitiveness, and photovoltaic cell manufacturing enterprise with strong technology research and development ability, independent intellectual property rights, and brand advantage. Guide polysilicon production capacity to central and western regions and encourage the polysilicon manufacturing enterprises to cooperate or restructure with advanced chemical enterprise so as to reduce power consumption, improve the comprehensive utilization. 


Speed up the technology level and equipment level. Support the research and industrialization of the high efficiency crystalline silicon cell, new thin film cell, electronic grade polysilicon, four closed loop device for silicon tetrachloride, advanced cutting machine, full automatic silk screen printing machine, flat plate coating technology and high purity key material by implementing New energy integration application engineering. Improve the technology level and equipment level of the photovoltaic inverter, tracking system, power prediction, centralized monitoring and smart grid, and improve the system integration technology of photovoltaic power generation. Support enterprises to develop new technologies and products for the production of silicon materials. Support the backbone enterprises to build photovoltaic power generation engineering technology research and development and testing platform. and support colleges and universities and enterprises to cultivate relevant professional talent that related to photovoltaic industry. 


Consolidate and expand the international market. Actively and properly cope with the international trade friction. Promote the establishment of a fair and equitable international trade order. Strengthen dialogue and consultation, promote global industrial cooperation, and standardize the order of import and export of photovoltaic products. Encourage photovoltaic enterprises to create international trade mode, optimize the distributions of the manufacturing area, and carry out investment cooperation in overseas. Encourage enterprises to implement the "bringing in" and "going out" strategy, gather the global innovation resources and promote the internationalization development of photovoltaic enterprises.


4.Accelerate the Adjustment of Industrial Structure and Technological Progress 


Inhibit blind expansion of photovoltaic production capacity. Strictly control of the new polycrystalline silicon project and photovoltaic cells and components project which simply aim to expand production capacity. Photovoltaic manufacturing enterprises should have advanced technology and strong capability of independent research and development. New photovoltaic manufacturing projects should meet the requirements of the conversion efficiency of single crystal silicon photovoltaic cells should no less than 20%, the conversion efficiency of polycrystalline silicon photovoltaic cells should no less than 18%, the conversion efficiency of thin film photovoltaic cell conversion efficiency should no less than 12%, and comprehensive energy consumption of polysilicon production should not higher than 100 kwh / kg. Speed up to eliminate polysilicon production capacity with high energy consumption, deficiency in material recycling and unconformity of the Environmental protection. Polysilicon projects should be strictly controlled in the area of power net input.


Accelerate the merger and reorganization of enterprise. Use the market forced mechanism to encourage enterprise mergers and acquisitions. Strengthen policy guidance and promote the establishment of long-term mechanism and eliminate backward production capacity. Support the development of the polysilicon and photovoltaic cell manufacturing enterprise which have high technology and strong market competitiveness, foster a number of polysilicon manufacturing enterprise with low comprehensive energy and less material consumption and strong international competitiveness, and photovoltaic cell manufacturing enterprise with strong technology research and development ability, independent intellectual property rights, and brand advantage. Guide polysilicon production capacity to central and western regions and encourage the polysilicon manufacturing enterprises to cooperate or restructure with advanced chemical enterprise so as to reduce power consumption, improve the comprehensive utilization.


Speed up the technology level and equipment level. Support the research and industrialization of the high efficiency crystalline silicon cell, new thin film cell, electronic grade polysilicon, four closed loop device for silicon tetrachloride, advanced cutting machine, full automatic silk screen printing machine, flat plate coating technology and high purity key material by implementing New energy integration application engineering. Improve the technology level and equipment level of the photovoltaic inverter, tracking system, power prediction, centralized monitoring and smart grid, and improve the system integration technology of photovoltaic power generation. Support enterprises to develop new technologies and products for the production of silicon materials. Support the backbone enterprises to build photovoltaic power generation engineering technology research and development and testing platform. and support colleges and universities and enterprises to cultivate relevant professional talent that related to photovoltaic industry.


Actively carry out international cooperation. Encourage enterprises to strengthen international research and development cooperation, carry out technological joint research and development of photovoltaic industry. Encourage qualified domestic photovoltaic enterprises and bases establish strategic cooperative relations with foreign research institutions and industry clusters. Support scientific research institutes and enterprises to establish international talent introduction and training mechanism to cultivate technical personnel with strong innovative ability and integrated management personnel. Actively participate in the development of international standards for photovoltaic industry, increase the overseas promotion of the independent intellectual property standard system, and promote the mutual recognition of the international certification. 


5.Standardize the Development Order of the Industry


Strengthen planning and guidance of the industrial policy. Prepare the implement development planning of photovoltaic industry according to the needs of the development of photovoltaic industry. Each region can prepare and implement relevant local planning according to the national photovoltaic industry development planning and the need of the region. Strengthen the communication and coordination of the national planning and local planning, manufacturing industry and power generation applications, construction of the photovoltaic power generation and power grid. Strengthen photovoltaic power generation planning and annual implementation guidance. Improve project construction management system of photovoltaic power stations and distributed photovoltaic power generation, and promote the orderly development of photovoltaic power generation.


Promote the construction of standardization system and testing and certification system. Establish and improve the standard system of photovoltaic materials, batteries and components, systems and components, etc. Improve the photovoltaic power generation system and related power grid technology standard system. Develop and perfect the building photovoltaic application standard system that suits to different climatic zones and buildings. Comprehensively consider the application of photovoltaic power generation in urban planning, architectural design and renovation of old buildings. Strengthen the testing and certification platform construction of the silicon, silicon materials and photovoltaic cells and modules, inverters and control equipment. Improve the testing and certification system of photovoltaic products, and timely release directory of photovoltaic products that in accordance with the standard. Carry out the observation and evaluation of solar energy resources, and establish solar energy information database.


Strengthen market supervision and management. Establish, improve and strictly implement the photovoltaic manufacturing industry standard, regulate photovoltaic market order, promote to eliminate backward production capacity out of market, and improve the development level of the industrial. Implement key products testing and certification system of photovoltaic cell module, inverter, control equipment, and products are not allowed to enter the market without the testing or certification. Strictly implement the bidding system of photovoltaic power plant equipment procurement, design supervision and engineering construction, oppose unfair competition and prohibit local protection. Improve the construction of photovoltaic power generation project and qualification management of operating technical position. Strengthen the access and operation regulation of photovoltaic power generation system. Establish photovoltaic industry development monitoring system, timely release industry development information. Strengthen the law enforcement and supervision on “Law of the People’s Republic of China on Renewable Energy” and relevant supporting policies. Local governments shall not charge solar power generation enterprises in the name of the collection of resources.


6.Improve Grid Management and Service


Strengthen the construction of auxiliary power grid. Grid enterprises should strengthen the construction and transformation of power grid which adapt to photovoltaic power generation, guarantee grid and photovoltaic power generation project can completed and put into production simultaneously. Actively develop fusion advanced energy storage technology, micro grid and smart grid technology in information technology, and improving the capacity of grid system to accept photovoltaic power generation. For the Photovoltaic power generation project with access to the public supply system, its network engineering and the transformation of public power grids should be invested and constructed by power grid enterprises. For the Photovoltaic power generation project with access to users, the transformation of public power grids should be invested and constructed by power grid enterprises.


Improve parallel operation service of photovoltaic power generation. Grid enterprises should provide parallel operation services to photovoltaic power generation, optimizing system operation, give priority to ensure the operation of photovoltaic power generation, ensure that photovoltaic power generation projects are connected in the net timely to purchase power generation. Simplify the access method and management program of the distributed photovoltaic power generation, publish the service process of the distributed photovoltaic power generation project, and establish a simple and efficient grid service system. Distributed photovoltaic power generation projects do not charge system reserve capacity fees and related services fees. Strengthen the grid access and grid operation supervision of photovoltaic power generation. 

    

7.Perfect Supporting Policies 


Strongly support user side photovoltaic applications. Open user side distributed power construction, support and encourage enterprises, institutions, communities and families to install and use photovoltaic power generation system. Encourage professional energy service companies to cooperate with users, invest construction and operate management for the users of photovoltaic power generation and related facilities. Implement record management for distributed photovoltaic power generation project, exempt distributed photovoltaic power generation business license application. For the distributed photovoltaic power generation projects that do not need to be subsidized by the state, the scale construction can be released if they have access to the grid operating conditions. All power generated by distributed photovoltaic power generation shall bring into the whole society electricity generation and electricity consumption statistics, and it is a performance indicator of the local government and power grid enterprise. The amount of spontaneous electricity generation is not included in the scope of application of the price ladder, but it included in local government and user''s energy. 


Improve the electricity price and subsidy policy. Distributed photovoltaic power generation adopts the policy of electricity subsidies. Formulate Internet benchmark price of the photovoltaic power station in different areas in according to resource condition and construction cost, and then determine price and subsidy standards by biding. According to the cost of photovoltaic power generation and other factors, reasonably reduce grid purchase price of photovoltaic power station and subsidy standards of distributed photovoltaic. The implementation period of grid purchase price and subsidy standards is 20 years in principle. According to the development needs of photovoltaic power generation, adjust the price of renewable energy additional collection standards, expanding the scale of renewable energy development fund. Scale of photovoltaic power generation is coordinated with national renewable energy development fund size. 


Improved subsidy funds management. Strictly renewable energy tariff collection and management, guarantee additional funds receivable. Improve the payment methods and procedures of subsidy funds. For photovoltaic power station, power grid enterprises fee charge monthly in accordance with the provisions of the state or to determine the photovoltaic power generation bidding. For distributed photovoltaic power generation, the system that power grid enterprises pay monthly subsidy funds should be established. The central government allocated subsidies to power grid enterprises on a quarterly basis to insure adequate subsidies in place timely. Encourage local governments at all levels to use financial funds to support the application of photovoltaic power generation. 


Increase fiscal and tax policy support. Improve the mechanism of the central financial funds to support photovoltaic industry, strengthen the support to solar energy resource measurement, evaluation and information system construction, research and development and industrialization of key technology and equipment materials, standard setting and testing certification system construction, new technology application demonstration, application of photovoltaic power generation in village and pastoral area, construction of photovoltaic power generation project in nonelectric area. For spontaneous electricity consumption of distributed photovoltaic power generation, government funds aiming at electric charge collection can be exempted. The research and development expenses, which in conformity with the relevant conditions, can be avoid in the calculation of taxable income tax deduction which In accordance with the provisions of the tax law. Merger and reorganization of enterprises can enjoy preferential tax policies if it is in accordance with the existing tax policy.  


Improve financial support policies. Financial institutions should continue to implement the credit policy of "holding pressure", support enterprises with independent intellectual property rights, advanced technology, great potentials to do better be stronger, provide credit support to the photovoltaic manufacturing enterprises which have market, order, benefit, and reputation. Financial institutions should take flexible credit policy according to the characteristics of photovoltaic industry and enterprise capital operation cycle, and in accordance with the principle of risk control, sustainable business, and credit access to up to the standard, support the normal production and operation of high quality enterprises, support investment projects with competitive advantage. Innovate financial products and services, support for small and medium enterprises and family self-built distributed photovoltaic power generation system. Strictly prohibited funds flow to the blind expansion project and backward production capacity projects. It will not give credit support to those photovoltaic manufacturing projects that does not meet the industrial policy. 


Improve land support policies and construction management. For those using unused land to build photovoltaic power generation project, they can be moderately sloping when making land planning or plan arrangements. For those do not involve conversion, it cannot occupy annual plan index. Explore to Lease state-owned unused land can reduce the cost of the initial investment of the project. Photovoltaic power generation projects that using unused land can be taken to the allocation of land after go through the procedures according to law. Improve the construction and management of photovoltaic power generation projects and simplify procedures.


8.Strengthen Organizational Leadership 


According to the requirements of the relevant departments, relevant departments should establish and develop relevant supporting documents, improve the price of photovoltaic power generation, taxation, financial credit and construction land, etc. and guarantee the implementation of various tasks and measures. The provincial people''s government should strengthen the management to the photovoltaic industry in the region, establish specific implementation plan by combining with practice, and implement a policies to guide the orderly coordinated development of the local photovoltaic industry. Improve the industry organization, Give full play to the role of industry organizations in strengthening industry self-discipline, promoting advanced technology and management experience, carrying out statistical monitoring and establishing research and development criteria. Strengthen industrial services, Establish photovoltaic industry monitoring system, timely release industry information, build a communication platform for bank and enterprises, and guide the healthy development of the industry.

The State Council   July 4, 2013

Annex: opinions of the State Council on promoting the healthy development of photovoltaic industry