China, the world’s biggest maker of solar modules, chose Yingli Green Energy Holding Co., Trina Solar Ltd. and about 100 other developers with a combined 2.8 gigawatts of capacity to receive subsidies.
The payouts, under the Golden Sun program, are the second round announced this year, the Ministry of Science and Technology said in a statement on its website. Generators in Jiangsu, a coastal province in eastern China, will gain the most from the aid as 374 megawatts of capacity, including developments by China’s biggest module maker by market value Hareon Solar Technology Co., will be located there.
The government may pay at least 15.4 billion yuan ($2.5 billion) for the projects if they are completed by the end of June 2013, according to Wang Xiaoting, a solar analyst at Bloomberg New Energy Finance in Beijing.
China began offering financial assistance for projects under the Golden Sun program in 2009. The nation is increasing assistance as solar-energy manufactures suffer from slowing demand and declining profit.
The total capacity chosen in 2012, including 1.7 gigawatts selected in the first round, is seven times more than previous years, said Lian Rui, a Beijing-based analyst at research company NPD Solarbuzz.
“China uses the program to offer cash sooner to developers, rather than preferential power prices, to boost installations,” Lian said.
— With assistance by Feifei Shen