Chinese solar panel makers urge government to delay subsidy cuts
Industry representatives say they still need government backing to compete with traditional power generators
Chinese solar panel makers have urged Beijing to delay surprise subsidy cuts and relax a cap on new projects, protesting that the policy will damage a sector already struggling financially.
In a letter first sent to Xinhua news agency this week, executives from 11 Chinese solar firms said the surprise move to withdraw support, announced on June 1, had come far too soon.
According to the letter reviewed by Reuters, the producers said the sector had racked up huge debts to ensure it could compete with traditional power generators, and still needed another three to five years of government backing.
The policy shift by China’s state planner, the National Development and Reform Commission (NDRC), sent solar stocks into free fall, prompting analysts to lower forecasts for global installations this year amid expectations that a glut of excess panels would send prices tumbling.
Immediate implementation of the policy would affect plants under construction, according to the letter from executives at firms like Sungrow Power and Canadian Solar, calling for “a certain grace period” for those that need it.
“There are people who believe the Chinese photovoltaic market has grown too quickly,” they said. “In fact, photovoltaic power generation occupies just 1.7 per cent of the total.”