Hareon signs 600MW solar plan

Hareon Solar Technology has signed a framework agreement with the authorities in China’s Hebei province to install 600MW of distributed-generation PV for roughly 6 billion yuan ($968.3m).

In the first stage of the plan, the company will develop approximately 300MW of rooftop solar, according to an agreement with the Hebei branch of the National Development and Reform Commission (NDRC).

The Jiangsu-based PV cell and module manufacturer did not disclose any additional details about the Hebei framework agreement.

Separately, it received approval from the China Securities Regulatory Commission (CSRC) last week for a private placement of 492.8 million new shares.

The Chinese government wants distributed generation to account for 8GW of the 14GW of solar installations it is targeting in 2014.

However, it appears that the country may not reach this goal, because just 188MW of distributed PV, or roughly 2% of the full-year target, was installed throughout the country in the first quarter.

China currently offers a feed-in tariff (FIT) of 0.62 yuan ($0.10) to 0.78 yuan ($ 0.12) per kWh for distributed-generation solar projects.

But Chinese banks are reportedly reluctant to honour private PPAs, due to concerns about the validity of contracts and the certainty of generating steady revenue over 20-year periods.