That makes sense as grid parity is not in place in China. That also suggests why price declines are in store. PV insights is suggesting module prices have fallen. There are 2 good articles on Guangfu today.
The first covers current market analysis and utilization rates. They suggest that utilization rates are still far below the pre 531 announcement although they did up tick recently in China.
The overall utilization rate of production capacity in the Chinese market continued to rise, reaching 83% - but still not returning to the level before the "531 New Deal"
This second article is a good article on the details of costs that China needs to hit for grid parity. It will give you an idea that the prices will drop significantly over the next 2 years. They are suggesting an average cost to build of 3.25RMB or $0.49(USD) for Grid parity. Depending on regions some are lower costs and some are higher in cost. They are suggesting the current cost to build is ~4.2RMB. They are suggesting a 28% system cost price decline is in order to meet grid parity.
These suggest that the solar costs are going to have to further drop. Current costs of $0.63(USD) will fall to $0.49(USD). The current module cost I estimate at $0.26. That is 41% of the total cost. A 28% price drop on the module cost is $0.0728. This places China needing a target module cost of $0.18-$0.19 come 2020 and later. That is where China hits grid parity and solar PV demand will explode.
Definition of Parity online
“The cost of PV system for I, II, and III resource areas requires 3.21, 3.37, and 3.28 yuan/W, respectively; the median of all regions, the threshold for national PV affordable Internet projects is 3.25 yuan/W.”
Analysis of the cost reduction of PV parity online
Based on the above parameters, the conclusions that can be calculated are: 1 The cost of the power station system is 4.2 yuan / W; 2 The internal rate of return of the project is 7.14%.
Core conclusion: According to this standard, the current national photovoltaic ground power station system cost still needs to drop by 28% compared with the median level of 3.25 yuan/W national parity online.
That is to say, the cost of photovoltaic power plant system will drop by 28% at the current level, and the country will implement large-scale (more than 50%) low-cost Internet access on the power generation side.