Top Runner

You have to give it to the Chinese, they know how to stimulate commerce. They use what I would call the ‘straight line footpath’ principle. That is, you place the footpath where people want to walk (the shortest distance between two points usually) so then you don’t get unwanted dirt patch paths in your grass.

In stimulating and supporting their solar manufacturers through the Top Runner program, the Chinese government mandates specific Top Runner efficiency standards.

In 2017 there appears to only be a single efficiency standard – 2017:  multi-crystalline 17%,  mono-crystalline 18% – with the minimum power for 60 cell panels increased to 295 watts.

Normal solar farms in China receive a feed-in tariff for the electricity they supply to the grid.  The amount of new solar capacity that can receive the feed-in tariff is determined each year.

The Top Runner capacity is done differently and uses reverse auctions.  This is where whoever offers to build a solar farm that meets the Top Runner efficiency standards at the lowest cost wins.  Reverse auctions are an excellent way to ensure companies make enough money to stay in business, as they are unlikely to bid a price that will drive them broke, while still making use of competition to keep prices low.

The mandated build program for these ‘Top Runner’ solar farms is increased each year:

• 2015 — 1 gigawatt
• 2016 — 5.5 gigawatts
• 2017 — 8 to 10 gigawatts

Its genius! It means the winners get to ensure that their factory utilization is at a level that underpins their cash-flow break-even.

BTW, the Japanese invented this type of Top Runner program. You’d never see such far-sightedness in this politically retarded country of ours.