07 Sep '11, 6pm

Can China’s Domestic Demand Dominate the Solar Market? via @greentechmedia

It’s another clever way to support their domestic PV industry. We do the same exact thing with First Solar and SunPower projects. 18 cents/kWh sounds plenty attractive to me. If they implemented a volume based ratcheting mechanism into the FIT you could budget out the costs. If you connected your ratcheting rate to the expected system cost declines the program should be self-balancing. Might not work but it’s worth a shot. They’ve got a lots of money to work with so it’s hard to judge where this could go. At 18 cents/kWh net subsidy costs are roughly 200,000,000 per year per GW. This means you’d get about 5 GW for a commitment of 1 billion a year. If the FiT were able to ratchet down to 10 cents/kWh you’d get 10 GW for a subsidy commitment of a billion per year. Things get expensive over time but if you’ve got the cash it’s worth experimenting. Ultimately the goal is takin...

Full article: http://www.greentechmedia.com/articles/read/Can-Chinas-Do...

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