Feed-In Tariffs Versus Tradable Green Certificates : Effectiveness of Support Policies on China's PV Deployment

As China has become a new photovoltaic (PV) deployment center since 2013, it is necessary to study the effectiveness of PV policies, namely Feed-in Tariffs (FIT) and Tradable Green Certificates (TGC). In literature, there is a lack of comparative study on FIT and TGC policy in China. The purpose of this paper is to compare the effectiveness of FIT and TGC for PV deployment in China. Based on the panel data of 30 provinces from 2010 to 2018, this paper uses econometric method to quantify the impact of FIT and TGC on three aspects of PV deployment. The results show that FIT is more effective than TGC. In the short term, FIT can increase the installed capacity by 1422MW, TGC can decrease by 357MW; FIT's transaction price (1CNY/ kWh) will increase by 74MW, and the on-grid tariff will increase by 9585MW. In the long run, FIT can increase the installed capacity by 4876MW, TGC by 1556MW, FIT's transaction price by 10MW, and on-grid tariff by 2780MW. In terms of power generation, FIT can increase by 4601GWh, TGC by 2605GWh, FIT's transaction price will decrease by 12244GWh, and on-grid tariff will decrease by 195GWh. Finally, suggestions are put forward