The State Council held a meeting on June 14, where it outlined six key measures aimed at addressing long-standing challenges in the photovoltaic (PV) industry, including power generation inefficiencies, delayed subsidy disbursements, and administrative hurdles. The proposed solutions have sparked optimism among market participants, who are expecting new policy support, such as revised PV tariff subsidies.
On June 17, the solar energy sector saw significant activity, with many PV-related stocks rising sharply. On the mainland, solar panel companies closed the day with an average gain of 0.31%, while several listed firms, including Central Shares, Ancai High-Tech, Sunrise East, and Jingsheng Electrical, hit the daily limit. In Hong Kong, GCL-Poly Energy surged by 7%, and Industrial Solar climbed 8%.
Meanwhile, the European Union imposed a 11.8% punitive tariff on Chinese PV products on June 6, intensifying pressure on domestic manufacturers. Opening up the domestic market is seen as a critical step to help the industry recover.
The State Council emphasized that improving PV power price support policies, establishing sub-regional benchmark prices for PV power stations, and expanding renewable energy capacity are crucial to ensuring timely distribution of subsidies for distributed PV projects.
Analyst Wang Xiaokun from Zhuo Chuang Information noted that while large industrial electricity tariffs remain a key concern, other measures like bank financing solutions, encouraging mergers and acquisitions, and grid infrastructure development are still in the early stages. However, the government’s statement has raised market expectations for concrete policy announcements soon. The PV tariff subsidy policy is considered the most likely to be implemented quickly, possibly before August—important because it marks a key deadline for whether EU tariffs on Chinese PV products will continue.
In addition to overcapacity, grid access and profitability have become major barriers for domestic PV projects. Although the State Grid has allowed free grid connection for small-scale distributed PV projects under 6 MW, the specific electricity price subsidy policy remains pending.
Yan Lili, a researcher at the National Development and Reform Commission’s Energy Research Institute, highlighted that any final subsidy level must consider the government’s financial capacity. If subsidies are too high, they could lead to rapid PV growth that may not be sustainable. She suggested that future subsidies should focus more on commercial buildings and large industrial users rather than individual investors.
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