Summary Of Photovoltaic Policies in Various Countries

National policies:

Distributed photovoltaic "self-generation and self-use" mandatory: Industrial and commercial projects connected to the grid after May 1, 2025 must meet a consumption ratio of more than 70% (Zhejiang and other provinces), and the electricity price is determined by market transactions, ending the "full grid-connected" model.

Green electricity trading mechanism: From January 2025, distributed photovoltaics can obtain additional income through green certificate transactions, and the green electricity premium is expected to be about 0.03 yuan per megawatt-hour.

Local policies:

Zhejiang Province: In 2025, central subsidy funds will be issued in advance, giving priority to supporting natural person distributed projects below 50kW, with a subsidy period of 5 years, and industrial and commercial projects must be registered through the "National Renewable Energy Information Management Platform".

Shenzhen: Provide 0.4 yuan/kWh subsidy for thin-film photovoltaic demonstration projects built from 2022 to 2025, requiring access to the virtual power plant management cloud platform.

Guangdong Province: The target for rooftop photovoltaic coverage in new parks is 50% in 2025, and self-generated and self-used electricity of distributed photovoltaics is exempt from government funds.

Tax credit upgrade:

Technology-neutral tax credit: Starting from January 2025, photovoltaic projects must use American-made components (local components account for ≥ 40%) to enjoy 30% ITC (investment tax credit), otherwise it will be reduced proportionally.

Energy storage supporting incentives: Photovoltaic + energy storage projects can stack ITC and energy storage tax credits, with a total credit ratio of up to 50%.

Trade restrictions:

Southeast Asian component tariffs: Starting from April 2025, a 32%-34% tariff will be imposed on Southeast Asian components, and the combined polysilicon import restrictions will increase the export cost to the United States by 18%-22%.

337 investigation: In February 2025, a patent infringement investigation on photovoltaic trunk cables was launched, involving Chinese companies such as Ningbo Xiaofu Technology.

Industry support:

3.4 billion euro net zero technology fund: open for application in April 2025, support local manufacturing of photovoltaic components, energy storage, etc., with a maximum subsidy of 150 million euros for a single project (up to 350 million euros in backward areas).

Germany policy adjustment: cancel subsidies for negative electricity price periods, new photovoltaic systems above 7kW must be equipped with smart metering devices, and the power generation of unstorage projects is limited to 60%.

Carbon tariff:

Imported components with carbon emissions exceeding 400kg CO₂/kW will be subject to a tariff of 0.05 euros/W, and the minimum import price is set at 0.18 euros/W.

Demand-side incentives:

Prime Minister's Photovoltaic Family Plan: Invest 750 billion rupees (about 9 billion US dollars) in 2025 to provide household photovoltaic subsidies for 10 million households, and subsidize 30,000 rupees per kW for projects below 2kW.

Open access for industry and commerce: Projects above 100kW can directly sign PPA (power purchase agreement), and the grid usage fee is reduced by 50%.

Dilemma on the manufacturing side:

The PLI plan has limited effect: only 37% of the 64.6GW component production capacity has been put into production, and the government plans to adjust the subsidy method from "subsidy based on production capacity" to "reimbursement based on cost".

Technology dependence: 90% of batteries rely on imports from China. After the implementation of the ALMM battery list in 2026, the domestic production capacity gap may widen.

Saudi Arabia:

NEOM New City 2.2GW project: the world's largest single photovoltaic power station is connected to the grid, equipped with a liquid-cooled energy storage system, and Sungrow provides inverters.

Tax incentives: Foreign-invested enterprises can hold 100% of the project, enjoy 50 years of tax exemption, and there is no limit on capital repatriation.

UAE:

5GW photovoltaic power station: The world's largest single project bidding will be launched in 2025, requiring the use of bifacial components and tracking systems.

Carbon tariff exemption: PV modules exported to the EU can apply for "green certification" to avoid carbon tariffs.

International aid:

African Development Bank: Provide a loan of US$25 million to Seychelles in 2025 to support PV + energy storage projects; provide a loan of EUR 6 million to Burkina Faso to build a 2MW village-level power station.

Egypt: Fill the power gap through the "PV + microgrid" model, allowing foreign capital to hold 70% of the shares.

Localization attempt:

South Africa: REIPPPP plans to introduce mixed financing, requiring 30% of the project components to be locally produced.

Namibia: 230 million euro green hydrogen project received investment from Chinese companies, supporting 500MW PV power stations.

Thailand:

Rooftop solar tax reduction: In 2025, household photovoltaic tax incentives will be introduced, which is expected to cover 90,000 households, with a reduction of 30%.

Zero tariffs on component imports: attracting Longi and Jinko to expand production in Thailand to avoid US tariffs.

Vietnam:

Adjustment of power purchase price: The on-grid electricity price for household photovoltaic surplus power is set at 671 Vietnamese dong/kWh (about 0.026 US dollars), encouraging "self-generation and self-use".

Capacity target: 20GW of photovoltaic installed capacity will be achieved in 2030, and the proportion of local component production capacity will be increased to 40%.

Malaysia:

Capacity restrictions will be lifted: ground and floating photovoltaic systems are allowed to break through the capacity restrictions of buildings, and photovoltaic greenhouses can be installed in the agricultural field.

Cash subsidies: The maximum subsidy for household photovoltaic projects is 4,000 ringgits (about 900 US dollars).

FIT adjustment:

Residential sector: Subsidies for systems below 10kW will be reduced from 16 yen/kWh (2023) to 15 yen/kWh (2025), and subsidies for commercial projects above 50kW will be reduced to 8.9 yen/kWh.

Bidding mechanism: Projects above 250kW are priced through competitive bidding, and the price range for the four rounds of bidding in 2025 is 0.059-0.061 USD/kWh.

Mandatory installation:

Tokyo policy: From April 2025, new residential buildings must install 4kW photovoltaic systems, with an initial investment of approximately US$7,175 and a payback period of 6 years.

Technology orientation: Perovskite and N-type batteries have become the focus of subsidies, and the EU requires that local production capacity account for 40% by 2030.

Trade barriers: Carbon tariffs and localization requirements in Europe and the United States have pushed up export costs, and Chinese component companies have accelerated their layout in Southeast Asia.

Financing innovation: Developing countries attract investment through "photovoltaic + green hydrogen" and "hybrid financing", such as the Saudi NEOM project.

Energy storage support: Germany, China and other countries have mandatory storage, and the proportion of "photovoltaic + energy storage" projects in the Middle East exceeds 30%.

Data sources: official websites of various governments, International Energy Agency (IEA), Bloomberg New Energy Finance (BNEF), and China Photovoltaic Industry Association (CPIA).