China PV installations to boom in fourth quarter after grace period removal
January 31, 2018
On 22 December 2017, the National Development and Reform Commission (NDRC) in China confirmed the 2018 FiT rate and the anticipated grace period until June 2018 to obtain the 2017 FiT rate (for projects approved in 2017). The FiT tariff valid from 1 January 2018 is 0.55 yuan/kWh, 0.65 yuan/kWh, and 0.75 yuan/kWh for resource areas I, II and III, respectively. Distributed PV systems that sell surplus power to the grid will obtain 0.37 yuan/kWh for the excess power. The updated policy has removed the grace period in 2019, meaning that the 2019 FiT rate will apply for all projects as of 1 January 2019. The FiT deadlines for different policy segments, in parallel with events in PV markets outside China, will determine the quarterly module pricing and installation patterns. IHS Markit maintains its current annual 50 GW PV installation projection for China in 2018, but we are reviewing the quarterly distribution.