Beijing decided that the preferential tariff at which the winning consortium would sell solar power to the grid would also be applied to other projects in the pipeline, rather than on a case by case basis. Which makes it much easier for potential and existing solar energy companies to plot their returns and profits.
This year, the government announced a scheme under which solar systems larger than 50kw installed on roofs will receive a subsidy of RMB20 ($3) per watt. (This is very much in line with the line being taken by other countries.)
To get this into perspective note that most authorities agree that profitability starts at RMB1.3-RMB1.5 per kwh. Still, the decision to use the Dunhuang tariff as a benchmark is seen as a positive sign.
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