4 FAQs about Xiangxi solar power grid connection subsidy

Which subsidy policy is responsible for China's solar irradiation surge?

The critical subsidy policy responsible for this surge in China has been the zonal feed-in tariff (FIT). Under the zonal FIT policy, the whole area of China is divided into three different resource zones according to their solar irradiation resources, and each zone has its own FIT levels.

How will China's solar subsidies affect the solar industry?

The reduction in subsidies could place additional strain on China's solar industry, which is already grappling with overcapacity and plummeting panel prices that threaten the viability of smaller manufacturers.

Why did China increase its grid investment in 2025?

In January 2025, China ramped up its grid investment to support the expansion of renewable energy – the first time since 2018 that its annual grid spending has surpassed generation projects. This boost aims to ensure the efficient delivery of clean power to homes and businesses. Sign up for our daily news round-up!

How does subsidy affect distributed PV capacity in China?

For example, Jia et al. found that for every one yuan/kWh increase in a subsidy, the distributed PV capacity at the provincial level would increase by 87.4 MW in two years. However, by the end 2016, there was more than 10 GW of distributed PV installed in China.

View/Download Xiangxi solar power grid connection subsidy [PDF]

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