China Accepting Applications For Solar Projects

The Chinese government is accepting applications for its first batch of solar projects until May 15th, according to JLM Pacific Epoch, who has details on the Chinese solar plan.

JLM Pacific Epoch: Eligible projects must: begin construction in 2009 and finish within two years; have completed contracts with solar product manufacturers; detail on-grid connective procedures; have installed capacity of 50KW or more; and establish monitoring and long-distance help systems for capacity, electricity and environmental data. Monosilicon PV products must exceed conversion efficiency of 16%, while polysilicon and amorphous silicon products must surpass 14% and 6%, respectively. The government will give priority to projects that: involve solar modules; are on-grid; or are located in schools, hospitals, or government buildings or regions with preferential policies. Previously completed or subsidized projects are not eligible for the project.

Yangzhong, Jiangsu province has selected its first batch of 39 demonstration buildings with integrated photovoltaic (PV) systems, reports The Ministry of Finance and Ministry of Housing and Urban-Rural Development released a notice on March 23 detailing intentions to accelerate the use of solar PV applications on buildings, including but not limited to building integrated PV technologies, by establishing base subsidies of RMB 20 per watt and encouraging industry standards to urge better technology, efficiency and preferential local policies.

When China announced its plan in March, the stocks of companies like Suntech Power (STP), Canadian Solar (CSIQ), Yingli Energu (YGE), JA Solar (JASO) soared, as they lifted over 40% per cent. The companies have held onto those gains, even though, it’s become more apparent that the Chinese solar subsidy isn’t going to provide a great deal of assistance to these companies or the overall market.

Yesterday we ran a report from FBR Capital that compared this bubble to last year’s brought on by a similar frenzy over Spanish subsidies.

Here’s more details on the plan, but in Chinese, if you can read it, let us know what they say.

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