Solar power station subsidy policy

Are subsidies causing overcapacity problems in photovoltaic supply chains?

In the past decade, subsidy policies aimed at demand-side of photovoltaic (PV) supply chains have created a dilemma. While they foster the growth of the PV industry, they also induce overcapacity problems to the society. As a result, many governments have cut back subsidies to PV system users.

Is a balanced subsidy policy a good strategy for PV supply chains?

Under this balanced subsidy policy, adopting a medium combination of operational strategies is the best strategy option for PV supply chains. Currently, traditional demand-side oriented subsidy policies have resulted in inefficient operations and welfare loss in the photovoltaic (PV) industry.

Does supply-side oriented subsidy policy support PV industry?

To rescue enterprises, but not the market, a different subsidy program is required to support PV industry. The supply-side oriented subsidy policy provides the answer through directly and moderately subsidizing PV enterprises and their supply chains.

Why is solar subsidy a problem?

Meanwhile, with the increased efficiency of the solar energy conversion and reduced cost of PV panel through technology advancement and competition, subsidy programs easily heat up disorderly development and oversupply problem that results in price deterioration and ensuing losses (Zipp 2012 ).

What is the subsidy reduction range for commercial PV power plants?

The subsidy reduction range of latter two stages exceeds 40 percentage, highlighting the accelerated rate of subsidy reduction for the commercial power plants. In light of commercial PV power plants, we simulate four scenarios for the SEPAP program subsidy strategies.

Are subsidy policies a game-theoretical model for PV supply chains?

Thus, three streams of literature are related to our research, the first stream is on the subsidy policies for PV industries/supply chains, the second one is on the operational strategies for PV supply chains, and the third one is on the game-theoretical modeling of the subsidy policies and operational strategies for PV supply chains.