China raises solar target for 2014 but introduces cap on incentives

China’s National Energy Administration (NEA) has announced that China aims to add 14 GW of PV power in 2014. However, the Chinese government will impose a cap on incentives that will ensure that no more than 14 GW of PV projects receive government support. Of the 14 GW targeted, 8.0 GW should come from distributed solar generation systems and 6.0 GW from large-scale PV power plants. The NEA had previously set a 2014 target of 10 GW, but in late December, the NEA submitted a proposal to Chinese authorities to increase the target to 12 GW. In addition to setting the 14 GW cap, the NEA has imposed quotas for each Chinese province. The provinces with the highest quotas are as follows: Zhejiang (1.2 GW); Jiangsu (1.2 GW); Shandong (1.2 GW); Hebei (1.0 GW); Guandong (1.0 GW); Henan (750 MW); Xinjiang (650 MW); Gansu (550 MW); Inner Mongolia (550 MW); Anhui (550 MW); Shanxi (500 MW); and Hubei (400 MW). In mid-July, the Chinese Government confirmed that the country aimed to have 35 GW of cumulative installed solar capacity by 2015. At the time, the State Council said that the new plan would enable the domestic solar market to grow by an additional 10 GW annually over the next 3 years and would help the domestic solar industry counteract oversupply and reduce its dependence on exports.