Research On The Fiscal And Taxation Policies To Promote The Development Of China’s Photovoltaic Industry

As the material basis of human activities, energy is essential for the development of human society. With the development of economy and society, the non-renewability of conventional fossil energies and environmental pollution problems caused by the usage of these energies becomes more and more prominent. So the replaceable and clean solar energy has drawn more and more attention. Photovoltaic power generation is an important method of solar energy exploitation and utilization. The development of Photovoltaic Industry is beneficial for the national energy security, energy-saving and emission-reduction, promoting economic restructuring and nurturing economic growth points. However, with the market downturns caused by the financial crisis and European debt crisis, a series of problems has occurred to photovoltaic industry after its rapid expansion in some years. These problems contain the imbalance of industrial structure, the weakness of independent innovation, the bottleneck of grid-connected technology, the high cost of photovoltaic power generation and the narrow financing channel. It is necessary for the government to make related policies in order to promote the photovoltaic industry development and improve the energy structure.Research approaches of literature survey, comparative analysis and case studies are used in this paper. At first, current situation and existential problems of domestic photovoltaic industry are expounded. Then the advanced experiences are concluded, which are relevant about promoting photovoltaic industry in some developed countries, such as Germany, Italy, Japan and America. Meanwhile the case of the Golden Solar Demonstration Project is analyzed and the paper proposed taxation policy recommendations based on adjusting industrial structure, enhancing the core competitiveness of the industry and enhancing the substitutability of solar energy. And specifically, when adjusting industrial structure, the government should increase the tax credits subsidized to corporations in the chain ends, promote the development of the downstream industry chain mainly using electricity subsidies and innovative ideas to increase financial support for the photovoltaic industry such as using asset securitization and other ways. When enhancing the core competitiveness of the industry, the government should increase financial subsidies to the highly technical aspects of the photovoltaic industry chain, increase tax incentives to the hi-tech photovoltaic business. When enhancing the substitutability of solar energy, the government should take efforts to open markets photovoltaic applications and increase the cost of conventional energy use. In addition, in the implementation phase of the policies, the government should pay attention to improve and promote the photovoltaic power generation project rating system and strengthen the supervision and management of the policy implementation phase.