Trade body China Renewable Energy Society has opined that abolition of subsidies for large solar projects will help divert the savings to smaller projects.

The incentives under the Golden Sun program are expected to drop with federal government urging companies to install additional photovoltaic devices.

China Renewable Energy Society vice chairman Meng Xiangan told Bloomberg that abolishing of subsidies for utility-scale projects would avoid duplication and preserve less-powerful plants owned by the final user of the electricity.

Developers in the country currently obtain a one-time return on investment through subsidies of at least CNY 0.5 ($0.88) per watt under some programs if they complete work by certain deadlines.