Trade body China Renewable Energy Society opined that the funds would instead be diverted to smaller developers.
China Renewable Energy Society vice chairman Meng Xiangan told Bloomberg that the new policy will preserve aid for less-powerful plants owned by the final user of the electricity while ending subsidies for utility-scale projects would avoid duplication.
If the proposed move is implemented, the subsidies under China’s Golden Sun program would shrink parallel to the country’s appeal to developers to install more photovoltaic devices.
The news agency added that several of the country’s solar developers are already hurting with Suntech Power, one of the world’s largest solar-panel makers unable to service debts any longer.
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.
China Renewable Energy Society liaises between the government and the industry on a wide range of subjects.
