Keqiao Household Solar Power Generation Subsidy

Does subsidy phase-out affect electricity consumption in China?

To quantify the impact of subsidy phase-out on electricity consumption in China. In this case, we focus on the PV generation subsidy as a production subsidy. The announcement of subsidy phase-out led to a larger energy “rebound effect”. They adjusted electricity usage patterns to maximize revenue from solar electricity.

Does China have a PV generation subsidy phase-out policy?

To test our argument, we use the case of the PV generation subsidy phase-out policy in China. China is the world's largest PV market, and the household PV industry has heavily relied on subsidy-based business models (Xiong and Yang, 2016).

What happened to PV subsidies in China?

The most significant reduction in household PV subsidies occurred in December 2017. The Chinese government announced a subsidy reduction of 0.05 RMB/kWh for household PV generation after January 2018. This means that households that installed and used PVs after 2018 had to accept lower PV generation subsidies of 0.37 RMB/kWh.

Does PV generation subsidy phase-out affect total electricity consumption?

The results of our study indicate that there is a larger rebound effect on total electricity consumption during the announcement of the PV generation subsidy phase-out. However, this effect gradually weakens over time as the policy is implemented.

What is a government subsidy for residential photovoltaics?

Policy variables. A government subsidy (Subsidy) for residential photovoltaics mainly refers to power generation subsidies, that is, a monetary reward for every kilowatt-hour of electricity generated by solar panels. The subsidy standards for each household are obtained from the National Development and Reform Commission (NDRC).

How much subsidy do solar panels get in Tianjin?

Since 2018, households that choose to adopt solar panels receive a subsidy of only 0.37 RMB/kWh for each kilowatt-hour of PV power generated. The electricity price for residents in Tianjin is 0.49 RMB/kWh. The reduced subsidy of 0.05 RMB/kWh accounts for nearly 10% of the electricity price, indicating a substantial reduction in the subsidy.