In 2020, the new policy of photovoltaic electricity price will be implemented, and the distributed subsidy will be reduced by more than 50%

In 2020, the guidance price and subsidy standard for photovoltaic access to the Internet will finally be implemented. On April 2, the national development and Reform Commission issued the notice on relevant matters concerning the pricing policy of photovoltaic power generation in 2020 (hereinafter referred to as the notice). From June 1 this year, the guidance price of new centralized photovoltaic power stations in the I-III resource area is 0.35 yuan per kWh (including tax, the same below), 0.4 yuan and 0.49 yuan respectively; the industrial and commercial distributed photovoltaic mode of "spontaneous self use and surplus power grid access" is adopted The subsidy standard of the project is 0.05 yuan per kwh; the subsidy standard of household distributed photovoltaic is adjusted to 0.08 yuan per kWh.

Compared with the photovoltaic on grid price and subsidy policy in 2019, the guiding price of I-III resource area will be reduced by 0.05 yuan, 0.05 yuan and 0.06 yuan per kWh, respectively, by 12.5%, 11.1% and 10.9%. The subsidy standard for distributed photovoltaic projects in the mode of "self use and surplus electricity on the Internet" is reduced by 0.05 yuan per kWh, a decrease of 50%; the subsidy standard for household distributed photovoltaic projects is reduced by 0.1 yuan, a decrease of 55.5%.

In the view of industry insiders, these declines are basically in line with expectations. Han Chen, an analyst at YueKai securities, believes that the price adjustment plan released this time is basically in line with the second version of the draft. From the bidding results in 2019, we can see that there is still a certain profit margin for the current guidance price, which will also give more room for investment enterprises in the subsequent bidding.

According to the notice, in principle, the on grid price of new centralized photovoltaic power stations shall be determined through market competition and shall not exceed the guiding price of the resource area. The industrial and commercial distributed photovoltaic power generation project adopting the "full online" mode shall be implemented according to the guidance price of the centralized photovoltaic power station in the resource area. Moreover, the distributed project of "self use and surplus power on Grid" will be priced together with the centralized power station.

"Due to the different reduction of the guiding electricity price in 2020, the projects in class III resource areas are relatively more competitive." Wang Shujuan, founder of Zhihui photovoltaic, believes that the resources in the same region are basically the same, and the subsidy intensity of distributed and centralized power stations is different. In most regions, the subsidy of centralized power stations has more advantages, and this year, the disadvantage of distributed projects is obvious.

It is understood that class III resource area is mainly located in the economically developed southeast coastal area. The local land resources are scarce. There are few large areas of land that can be used to develop photovoltaic power plants, and the cost of land is high, but the power consumption capacity is strong. Some provinces also subsidize electricity prices.

According to the notice issued by the National Energy Administration on March 10, the total budget of subsidies for new photovoltaic projects in 2020 will be reduced by nearly half to 1.5 billion yuan. Among them, 500 million yuan is used for household photovoltaic; 1 billion yuan is used for subsidized bidding projects, including centralized photovoltaic power plants and industrial and commercial distributed photovoltaic projects.