Profit margins for the developers have come under pressure in the recent past as prices declined in the wake of reduced supply of solar panels.

Developers will also be offered a preferential value-added tax policy, similar to the one for the wind power sector.

Feed-in tariffs are charges paid for electricity from renewable sources and under the current structure profit margins had started declining given lower demand prompting the government for a revision.

The government is also working to boost demand for solar technology and promoting the sale of solar panels.

An environment to encourage mergers and acquisitions in the industry to help struggling players will also be encouraged by the government.

The Chinese government plans to subsidize the distributed solar power projects based on their electricity power generation.

 

 

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