China will no longer give subsidies for new solar power stations, distributed solar projects by commercial users, or onshore wind projects from the central government budget in 2021.
The new rule which will be effective from August 1, 2021, follows a drastic fall in manufacturing costs for solar and wind devices amid booming renewable capacity in China, and will ease a backlog of subsidy payments that had exceeded 400 billion yuan ($62.64 billion). In addition, electricity generated from the new projects will be sold at local benchmark coal-fired power prices or at market prices.