As the development of photovoltaic plays an increasingly prominent role in the full, accurate and complete implementation of carbon peak carbon neutrality, the Ministry of Finance has turned to a more positive attitude towards the development of photovoltaic industry, with more and more policy support and more and more favorable releases.  According to grassroots PHOTOVOLTAIC, this is the fourth time in 2022 that the Ministry of Finance has expressed support for the development of photovoltaic industry.  

(1) The Ministry of Finance: Vigorously developing renewable energy and promoting the settlement of the funding gap in subsidies for renewable energy power generation  

On March 6, 2022, the Ministry of Finance has issued "about 2021 central and local budget implementation situation with the 2022 report of the central and local draft budgets (hereinafter referred to as the" report "), promote the optimization of energy structure, improve the clean energy support policy, vigorously develop renewable energy, promoting renewable energy subsidies.  

According to the report, budgetary expenditures of central government-managed funds in 2022 will be 807.134 billion yuan, up 98.8% from the 2021 budgeted figure of 405.997 billion yuan and 101.6% from the actual figure of 400.331 billion yuan.  The wind energy Committee of the Chinese Renewable Energy Society pointed out that the increased government fund budget is expected to solve the problem of subsidies for the renewable energy industry.  

(ii) Three ministries and Commissions: Carry out self-examination of renewable energy power generation subsidies, and the underpayment of renewable energy is expected to be solved at one time  

A notice from the General Office of the National Development and Reform Commission, the General Office of the Ministry of Finance and the Comprehensive Department of the National Energy Administration on self-inspection of renewable energy power generation subsidies was circulated online on March 28.  The circular requires power grid and power generation companies to conduct self-inspections of full-caliber renewable energy power generation projects with subsidized demand that will be connected to the grid by December 31, 2021, until April 15.  

(3) The State Council: another 50 billion yuan for renewable energy subsidies  

Premier Li Keqiang presides over an executive meeting of The State Council on May 11.  The meeting called for ensuring energy supplies.  On top of the previous support, another 50 billion yuan will be allocated to central power generation enterprises for renewable energy subsidies, and 10 billion yuan will be injected from the state capital operation budget to support bail-outs of coal power enterprises and more power generation.  We will optimize policies to release advanced coal production capacity in a safe and orderly manner.  Power cuts must not occur.  

(4) Ministry of Finance: Support renewable energy such as photovoltaic, wind power and biomass, and replace fossil energy with new energy with stable output  

On May 30, the Ministry of Finance issued a notice entitled "Opinions on Financial Support for Carbon peak and Carbon neutrality".  1. Support the building of a clean, low-carbon, safe and efficient energy system.  We will transform and upgrade coal consumption in an orderly way.  We will improve policies supporting clean energy, vigorously support the use of renewable energy at a high rate, and promote the development of a new type of power system in which the proportion of new energy will gradually increase.  Support photovoltaic, wind power, biomass and other renewable energy, as well as stable output of new energy to replace fossil energy.  We will improve support policies to encourage more unconventional natural gas production and production.  We will encourage regions where conditions permit to develop new types of energy storage and pumped storage in light of local conditions, and accelerate the formation of an electric power development mechanism based on energy storage and peak-regulating capacity.  We will strengthen supervision over energy conservation in key industries and equipment, and organize energy metering reviews.  

(5) Announcement by the Ministry of Finance!  New infrastructure and new energy will be supported by special debt.  We will increase tax rebate policies and speed up government expenditures  

On June 2, the Ministry of Finance held a special press conference to support stabilizing the overall economic market.  According to an official from the Ministry of Finance, 24 of the 33 policies and measures introduced by The State Council in six aspects are directly related to fiscal functions, including taxation, special bonds, government procurement, expenditure policies and people's livelihood social security.  The Ministry of Finance (MOF) will take the initiative to ensure that all policies are implemented quickly, contribute to stabilizing the overall economy, and bring the economy within a reasonable range.  

Treasury officials clear again, should further intensify tax left for tax refund policy, speed up the progress of fiscal expenditure, to speed up the special local government bond issuance use and expanding the scope of the support, go all out to stabilize the market main body, actively expand the investment and consumption, support to ensure the safety of food energy, support industry chain supply chain stability, ensure the basic livelihood of the people.  

The Ministry of Finance has accelerated the use of special bonds issued by local governments and expanded the scope of support, said Ao Wenhan, assistant minister of finance.  We will ensure that all new special bonds issued this year will be basically issued by the end of June, and strive to use them by the end of August. We will include new infrastructure and new energy projects in the focus of special bonds for support, and better leverage the positive role of stabilizing growth and investment.  

(VI) Five ministries and Commissions: increase financial support to promote the healthy and orderly development of wind power and photovoltaic power industry  

In February 2021, the five ministries and commissions jointly issued the Notice on Guiding The Strengthening of Financial Support to Promote the Healthy and Orderly Development of wind power and photovoltaic power Industries, and put forward policies and measures such as loan for confirming subsidy rights and charging renewable energy price surcharges in full amount to solve the problem of subsidy arrears.  

(vii) Ministry of Finance: Preferential allocation of photovoltaic poverty alleviation and distributed subsidies for natural persons  

On January 20, 2020, the Ministry of Finance, the National Development and Reform Commission and the National Energy Administration jointly issued a supplementary notice on "Several Opinions on Promoting the Healthy Development of Non-water Renewable Energy Power Generation", which determined the mode of distributing renewable energy subsidies on behalf of power grid enterprises instead of issuing renewable energy subsidies catalogue.  The opinions are clear, power grid enterprises should give priority to the payment of photovoltaic poverty alleviation, natural person distribution, 2019 photovoltaic bidding project, voluntary conversion to parity project.  

At the same time, it clearly adopts the "reasonable utilization hours of the whole life cycle" of various renewable energy power generation projects as the total number of power generation hours that they can enjoy subsidies in 20 years (15 years for biomass power generation), and the excess part will be traded according to the benchmark price and will be issued with green certificates.  

The reasonable utilization hours of the whole life cycle of various projects are as follows:  

The rational life cycle utilization hours of wind power projects in category I, II, III and IV resource zones were 48,000 hours, 44,000 hours, 40,000 hours and 36,000 hours respectively, and the rational life cycle utilization hours of offshore wind power were 52,000 hours.  The reasonable utilization hours of photovoltaic power generation projects in the first, second and third resource areas in the whole life cycle are 32,000 hours, 26,000 hours and 22,000 hours.  (Grassroots PHOTOVOLTAIC)