Solar power generation subsidy method

Should PV power price subsidies be reduced gradually?

When PV power price subsidies were reduced gradually, PV enterprises have to enhance the marginal returns in the market through technological progress , which may encourage PV enterprises to pay more efforts into R&D activities and obtain a competitive advantage in the market. 4. Conclusions and Discussion

Do subsidies promote innovation in PV technology?

With a global sample, Hoppmann et al. find that aggressive subsidies on the demand side have promoted enterprises’ R&D investments in PV technology exploration. Nicolli and Vona find GSs in 19 EU countries have spurred innovation in PV technology from 1980 to 2007.

Why is solar subsidy a problem?

Meanwhile, with the increased efficiency of the solar energy conversion and reduced cost of PV panel through technology advancement and competition, subsidy programs easily heat up disorderly development and oversupply problem that results in price deterioration and ensuing losses (Zipp 2012 ).

Can cities achieve low solar electricity prices without subsidies?

We reveal that all of these cities can achieve—without subsidies—solar PV electricity prices lower than grid-supplied prices, and around 22% of the cities’ solar generation electricity prices can compete with desulfurized coal benchmark electricity prices.

Is a balanced subsidy policy a good strategy for PV supply chains?

Under this balanced subsidy policy, adopting a medium combination of operational strategies is the best strategy option for PV supply chains. Currently, traditional demand-side oriented subsidy policies have resulted in inefficient operations and welfare loss in the photovoltaic (PV) industry.

Should PV subsidy program design focus on long-term benefits?

Thus, the PV subsidy program design should focus on long-term benefits by implementing a technology-neutral incentive to reduce carbon emissions from electricity generation and maintaining a stable and sustainable development of PV industry, rather than short-term savings on budgets.