New PV stimulus package to offset EU barriers

NANCHANG -- The government has introduced a new stimulus package to boost the development of the domestic photovoltaic (PV) industry and offset the negative impact from punitive EU duties imposed in June.

Just one year after announcing an increase in its cumulative PV capacity target to 21 million kilowatts (kW) for 2015, the government said Monday that it is raising the target to 35 million kW.

To boost PV use in the domestic market, the government will build 100 distributed PV demonstration zones and 1,000 distributed PV demonstration towns and villages, according to the statement released by the State Council on Monday.

The government is also encouraging the expansion of small-scale distributed PV generation, such as residential PV installations, throughout the country.

The new goal will create market demand totaling 100 billion yuan ($16.2 billion), industry insiders have calculated.

The government's attempts to reinvigorate the PV industry have seen positive effects since last year.

Jiangxi Solar PV Corp, a manufacturer of crystalline solar cells in East China's Jiangxi province, resumed production in April after an 8-month production halt.

"We have enjoyed double-digit growth since January and orders have been booked up for the whole year," said Zhang Zhongliang, executive general manager of Jiangxi Risun Solar Co Ltd, a PV cell and module manufacturer.

Overcapacity, over-dependence on overseas markets and inadequate development in the domestic market have troubled the industry since the beginning of last year, as overseas demand for Chinese PV products shrank significantly during the global economic downturn.

The punitive duties imposed by the EU since June dealt another blow to the struggling PV industry, as it relies heavily on the European market.