State council of China has published five pieces of advances about promoting the healthy development of PV industry, including setting FIT according to the difference of districts, Subsidy policies in accordance with the power distributed generation, and implementation of wind power of the photovoltaic power plant projects in the same preferential VAT policies. This new policy means beneficial on the domestic PV application projects and also signs that Chinese PV industry has been entering the FIT time.

The new policy also stresses the support of distributed power. Relevant people say that the biggest feature of PV industry is dispersibility as many countries take it as a trend. And the large-scale PV plants actually are a kind of resources since the land is limited. As the main part of commercial investment, they will mainly focus on the ground plants and the distributed power will be in the future.

The new PV policies have three pieces of practical significance for Chinese PV application.

First, it signs that China is formally entering the FIT time. The PV policy subsidy in China has undergone three steps, from tender price to Golden Sun projects, and now it is FIT time. Nowadays, the nation has mentioned that either the large-scale power plant or the distributed power plants have to adopt KWh of electricity subsidies. This may be the biggest significance of the new policy.

Second, about valued-added tax, 8.5% is half lower than 17%.

Third, the State Council also rises that they will improve the FIT practice and monitoring. These are all the worries among the industry and mentioned, too. And now what we expect is the detailed regulations can publish as soon as possible, which has an important positive significations on the development of Chinese PV industry.