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Chinese Solar BIPV Subsidies of 9 Yuan/Watt should boost Solar Stocks

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China has announced a new solar subsidy for BIPV systems of 9 Yuan per Watt ($1.4/watt) and CNY 7/watt for PV systems for home.Note China has already become a top 5 market in the world in 2011 after announcing a $1.15/kwh Feed in Tariff for utility scale solar power installations.This new subsidy by the Chinese ministry of finance should boost the home and commercial segment.Note China had recently raised the target of solar energy to 15 GW by 2015 from 10 GW as solar energy has grown amazingly fast in the recent past.

Note Chinese solar panel manufacturers have faced a torrid time with oversupply and sanctions against imports by foreign countries.The Chinese government which was for long delaying the solar subsidies has changed its stance introducing a number of supporting measures for the solar industry which is the largest in the globe right now.Note only are its banks supporting it major solar companies but now it is boosting domestic growth as well.Solar prices have fallen drastically and have reached retail grid parity at a number of places in the world already.

BIPV Market and Companies

BIPV is the acronym for  Building Integrated Photovoltaics which means the integration of photovoltaic materials into building structures such as roofs,windows and facades.It not only replaces the building supplies but also generate electricity creating a killer green product.This is one of the fastest growing segment in the solar industry and it has been estimated that almost 6-7% of the solar industry is made of BIPV products.A wide variety of technologies and products are being used in creating BIPV products.Though a large number of big solar panel manufactures like Suntech,Yingli,Canadian Solar have come out with BIPV Panels and Products,the segment has not become as big mainly because of higher costs vis a vis the standard crystalline solar systems.There are also specialized BIPV suppliers such as Ascent Solar and Konarka whose products are more suited to the BIPV Industry than the normal module industry.Some of these suppliers have no option as their technology is no longer competitive with the Chinese solar panel producers.Solyndra had a niche product which could be used in rooftops with ease of installation and low weight.However the high costs drove it to bankruptcy.The next leg up to the BIPV industry should come up with more BIPV products from the Major Solar Companies and as cost  of solar silicon decline further with scale and innovation

Read about the 100 Solar Energy Stocks which would benefit

Earlier Chinese Solar Subsidies Articles

Giant Chinese State Owned Utilities expectedly Win most of Solar Projects with Loss Making Bids

China had recently put up 280 MW of Solar Projects up for Bidding in the second such case in a time span of 1 year.These projects saw stiff competition from China’s Big 5 Power Utilities.The bidders went as low as $0.108/KwH which pretty much ensures that thedeveloper will see big losses in his investment.But for the Big 5 Utilities,these projects are small change for their companies massive billion dollar cash flows.It allows them to take a first mover advantage in the growing Green Energy Market in China which is going to be one of the biggest in the coming decade.According to unconfirmed reports China Power Investment has won 7 out of the 13 projects with bids ranging from 10-15c/KwH.The other utilities are also said to have won the other projects.No small time developer could hope to compete at these prices,so it was a no brainer that these SOE would win these Solar Energy Projects.

 

China’s Solar Energy Target raised by 150% to a massive 50 GW by 2020 -TSL,YGE,STP,SOL,LDK,JASO,JKS,CSUN,DQ,GCL,CSIQ to benefit

China’s Solar Panel Manufactures have enjoyed a massive boom phase though domestic solar electric capacity has failed to keep up.China has been rewriting its renewable energy plan  in the wake of the Fukushima Nuclear Energy Disaster in Japan.Note there has been a strongglobal backlash against nuclear energy around the world and 7 nuclear plants in Germany have been closed all but in name.Other countries like South Korea,Italy,Switzerland are rethinking of what do about their nuclear reactors giving the massive tail risks with nuclear generation.China had a target of only  20 GW of solar by 2020 has decided to raise the target by  150% to 50 GW according to the country’s leading energy planning authority NDRC.Note China installed more than 15 GW of Wind Energy in 2010 alone becoming the world’s largest Wind Energy Market by far.Solar Energy strongly lags Wind in China despite China having the biggest solar panel manufacturing industry in the world.Its Golden Sun and other Solar Subsidy programs have been small in absolute terms compared to its huge electricity capacity.Note Wind Power in China has reached a saturation level with almost 18 GW installed in 2010 ,with such a high level further growth looks quite difficult.

 

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Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to greensneha@yahoo.in or call me on +913340606492.

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