Taiwan has decreased the feed-in-tariffs by 30% in comparison to last year. The cost of solar power equipments has gone down and hence the feed-in-tariff. The decreased feed-in tariff is applicable for year 2011.

The reduction is impacted by the fact that the Solar Cell cost will decline from 10 to 15 percent. It is expected that solar cells annual global production will be 30 gigawatts in 2011.

“Solar power costs may fall further,” Hwang Jung-chiou, vice minister of economic affairs, said in a press conference in Taipei today.

The new rates will be NT$7.33 (25 cents) a kilowatt-hour as compared with NT$11.12 for 2010. The new floor price is NT$2.61 for electricity generated by wind. The government aims to have 100 megawatts  onshore wind power capacity and 70 megawatts of solar panels installed this year.

Taiwan Power is one of the monopoly grid operator in taiwan. The Feed-in tariffs paid by Taiwan Power, , are at least NT$11.12 per kilowatt-hour for photovoltaic solar panels installed in 2010 and NT$2.38 for wind farms, That compared with an average cost of NT$2.06 per kilowatt-hour for fossil fuels such as coal and oil.

Taiwan’s government has been promoting solar energy by offering feed-in tariffs for electricity generated by solar panels and wind turbines at higher levels than for those for power from fossil fuels.

The government is setting this year’s feed-in tariffs at a minimum NT$7.33 a kilowatt-hour for solar power and NT$2.61 for electricity generated by wind, the Ministry of Economic Affairs said in a statement yesterday.