According to China-based media reports,the China government has been eager to create domestic demand,but due to the limited budget,the second phase of the Golden Sun Demonstration Project and Building-integrated photovoltaic(BIPV)Demonstration Project in 2012 has only permitted 2GW out of 10GW(20%)that applicants were seeking to install.The low percentage of projects being permitted shows the difficulty of obtaining government subsidies in China.
The reports added that the lowest subsidy is CNY5.5/watt(US$0.88/watt)and if all applications had been passed,the government would have had to provide a fund of CNY50 million,which would be a heavy burden on the government budget.Hence,only 2GW of projects have been permitted.
There were 1.7GW of projects permitted in the 2012 first phase of the Golden Sun Demonstration Project.Adding the second-phase 2GW,the government needs to provide financial support up to a total of CNY3.7 billion so far.
Compared to other regions,China's solar stimulus policy seems to work.However,the total return on project has been relatively low.In addition,the bids favor domestic firms,hence international firms will not be able to benefit from the growing market.
