China to set new tariffs for solar generated electricity

Existing fixed tariff to be abolished.

The National Development and Reform Commission said prices for utility-scale generation will be based on regions. There will no longer will be a fixed tariff of 1 yuan (US$0.16) a kilowatt hour everywhere except in Tibet, where they get 1.15 yuan.

China plans to set four rates that solar power producers can earn for selling electricity to grid operators compared with the existing two rates.

The lowest price will be 0.75 yuan a kilowatt hour in four areas of Qinghai province. The other rates will be 0.85 yuan, 0.95 yuan and 1 yuan per kilowatt hour.

The government also plans to set a rate of 0.35 yuan per kilowatt hour for distributed solar power projects. These projects have a capacity of less than 6 megawatts and will be connected to grids with voltage of as much as 10 kilovolts.