Recently, the Ministry of Finance, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, the National Development and Reform Commission and the National Energy Administration of the People’s Republic of China jointly issued the Circular on Seeking Public Comments for the Incentive Policies on New Energy Vehicle Charging Facilities during the 13^th Five-year Plan Period and Strengthening the Popularization and Application of New Energy Vehicles (hereinafter referred to as the Circular), which specifies the measures and standards for providing fiscal subsidies for new energy vehicles and charging facilities. It was learnt that, from 2016 to 2020, the central government will continue to allocate funds as rewards and subsidies for construction and operation of charging facilities. In accordance with the released policies, the standards for rewards and subsidies mainly depend on the number of new energy vehicles popularized by related provinces (municipalities, autonomous regions), meaning that the bigger the number is, the more the rewards and subsidies will be. Of these rewards and subsidies, the reward for key provinces and cities in air pollution control is the highest, reaching RMB120 million at most.

 

The Circular sets standards for rewards for new energy charging facilities, which mainly depend on the number of new energy vehicles popularized by related provinces (municipalities, autonomous regions), meaning that the bigger the number is, the more the rewards and subsidies will be. The reward for key provinces and cities in air pollution control is the highest. In 2016, for the key provinces and cities in air pollution control, rewards and subsidies of RMB90 million will be granted for popularization of 30,000 new energy vehicles; based on that, reward of RMB7.5 million will be added for popularization of every 2,500 more such vehicles, and the rewards and subsidies for vehicle popularization above the threshold may reach RMB120 million at most. By 2020, for the key provinces and cities in air pollution control, the threshold for such rewards and subsidies will be raised to 70,000 vehicles, while reward of RMB12,600 will be granted for each vehicle, and reward of RMB11 million will be added for popularization of every 6,000 more vehicles.

 

Source: Translated from Invest Guangzhou, January 25, 2016