China ups capital ratio for solar PV projects to 30%

China’s Ministry of Industry and Information Technology (MIIT) announced a draft rule on Tuesday, raising the minimum capital ratio for solar photovoltaic (PV) manufacturing projects to 30 per cent.

Previously, the minimum capital ratio was 30 per cent for polysilicon projects and 20 per cent for other PV projects. This rule will apply to both new and expansion projects. The draft rule, open for public comment until July 15, aims to enhance the management of the PV industry and accelerate its upgrading and structural adjustments.

Additionally, the draft stipulates that registered companies must allocate at least 10 million yuan ($1.38 million) annually for research and development and process improvement, amounting to no less than 3 per cent of their total sales, aligning with current guidelines.

Attribution: Reuters.