Nationwide Policies and Funding Subsidy Standards for the Renovation and Management of Coal-Fired Boilers in All Provinces and Cities

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2020-10-06

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Hebei Province has a very large number of industrial boilers, making the task of phasing out coal-fired boilers below 10 tons particularly challenging. To support the steady progress of pollution control efforts, Hebei has formulated the "Hebei Provincial Measures for the Administration of Fiscal Subsidies for Comprehensive Atmospheric Pollution Control," which outlines detailed boiler subsidy guidelines as follows: 1. **Electricity-for-Coal Subsidy Standards in Rural Areas** A subsidy of 85% is provided for household investments in equipment purchase and installation (including indoor wiring upgrades), with a maximum subsidy of 7,400 yuan per household. This funding is shared equally—50% by the provincial government and 50% by city and county governments, while the remaining 50% is borne by the users themselves. Additionally, residents receive a subsidy of 0.2 yuan per kilowatt-hour for electricity used during the heating season. This subsidy is also split equally among the provincial, municipal, and county levels, with a cap of 10,000 kWh per household. The subsidy policy and standards are initially set for three years. 2. **Gas-for-Coal Subsidy Standards in Rural Areas** A subsidy of 70% is offered for household investments in gas equipment purchase and installation, capped at 2,700 yuan per household. Again, this funding is shared equally between the provincial government and city/county governments, with the remaining 30% covered by the users. Furthermore, households receive a gas price subsidy of 1 yuan per cubic meter for heating purposes, with an annual subsidy cap of 1,200 cubic meters per household. This subsidy is also divided equally among the provincial, municipal, and county levels, again with a three-year policy and standard period. Additionally, each household receives an investment subsidy of up to 4,000 yuan for constructing indoor pipelines within the village, with 1,000 yuan funded by the province and 3,000 yuan contributed by city and county governments. 3. **Coal-Fired Boiler Remediation Subsidy Standards** Financial assistance is provided for the renovation or retirement of coal-fired boilers. Specifically: - For boilers that are completely dismantled and removed, the subsidy stands at 30,000 yuan per steam ton. - For boilers undergoing clean energy conversion, the subsidy increases to 80,000 yuan per steam ton. 4. **Subsidy Standards for Retiring and Shutting Down Coal-Fired Power Plants** The provincial government offers a reward-and-compensation incentive of 300 yuan per kilowatt for units that are shut down. However, this subsidy does not apply to units already included in the national "13th Five-Year Plan" for elimination, illegally constructed units, those reaching the end of their operational lifespan, or power plants opting for electricity capacity trading mechanisms. --- **[Henan Province]** Before the release of Henan Province's latest 2018 Implementation Plan for the Battle Against Air Pollution, no specific boiler subsidy standards had been established at the provincial level. Instead, individual cities and counties in Henan had previously issued localized subsidies for coal-fired boiler renovations and low-ammonia combustion upgrades. This year, Henan Province is adopting a phased approach to gradually reduce financial incentives: 1. Boilers completed before October 31, 2018, will receive a minimum subsidy of 60,000 yuan per steam ton. 2. Boilers completed by October 31, 2019, will qualify for a subsidy of at least 40,000 yuan per steam ton. 3. No further financial incentives will be provided for boilers decommissioned after October 31, 2020. Notably, the primary methods for phasing out these boilers include complete demolition, replacement with centralized heating systems, conversion from coal to natural gas or electricity, and switching to geothermal, wind, solar, or biomass energy equipped with baghouse dust collectors. However, alternatives such as clean coal, water-coal slurry, anthracite, semi-coke, green coke, or crude oil are explicitly excluded. Importantly, any existing coal-fired boilers that have already been shut down or phased out must not be reused to fraudulently claim subsidies. During the transition to natural gas, all affected coal-fired boilers must simultaneously undergo low-nitrogen emission upgrades. --- **[Shandong Province]** To accelerate the pace of ultra-low emission upgrades across the province's coal-fired units (boilers) and further improve air quality, Shandong Province has expanded its financial incentive program this year. Building on two consecutive years of allocating 426 million yuan to implement reward-and-compensation policies, the province is now injecting an additional 200 million yuan to incentivize cities that successfully completed their targets ahead of schedule in 2016. This initiative aims to ensure that by the end of 2018, all coal-fired units above 100 MW and boilers exceeding 10 steam tons per hour across the province achieve ultra-low emission standards. The total reward fund is divided into two parts: - **Ultra-Low Emission Upgrade Rewards for Coal-Fired Units:** A total of 101.26 million yuan will be distributed based on the scale of approved ultra-low emission upgrades completed by each city for units under 100 MW. The subsidy rate is set at 35,000 yuan per MW. - **Ultra-Low Emission Rewards for Coal-Fired Boilers:** An additional 90 million yuan will be allocated according to the proportion of boilers above 10 steam tons per hour that have been successfully verified against the province’s target requirements. Cities ranking among the top three nationwide in terms of completion rates—each receiving a fixed reward of 30 million yuan—will be prioritized for this funding. By leveraging the guiding and incentivizing role of fiscal funds, Shandong Province encourages cities to prioritize early upgrades, rapid emission reductions, and timely benefits, ensuring that the province meets its ambitious ultra-low emission goals with both quality and efficiency.

[Hebei] Hebei Province Special Fund Subsidy Measures for the Control of Coal-Fired Boilers
Hebei has a very large number of industrial boilers, making the task of phasing out coal-fired boilers below 10 tons particularly challenging. To support the steady progress of pollution control efforts, Hebei has formulated the "Hebei Provincial Measures for the Administration of Fiscal Subsidies for Comprehensive Air Pollution Control," which outlines the detailed boiler subsidy guidelines as follows:
1. Subsidy Standards for Replacing Coal with Electricity in Rural Areas
An 85% subsidy will be provided for household equipment purchases and installations (including indoor wiring upgrades), with a maximum subsidy of 7,400 yuan per household. This funding will be shared equally—1/2 each—by the provincial government and the city/county governments, while the remaining 1/2 will be borne by the users themselves. Additionally, residents will receive a subsidy of 0.2 yuan per kilowatt-hour for electricity consumption during the heating season, with 1/3 of the cost covered by the provincial, municipal, and county governments respectively. Each household is eligible for a maximum subsidy of 10,000 kilowatt-hours. The subsidy policy and its corresponding standards are initially set to last for three years.
2. Subsidy Standards for Replacing Coal with Gas in Rural Areas
A subsidy of 70% will be provided for the purchase and installation costs of household gas equipment, with a maximum subsidy amount of no more than 2,700 yuan per household. This subsidy will be shared equally—50% from the provincial government and 50% from city and county governments—while the remaining 50% will be borne by the users themselves. In addition, a gas price subsidy of 1 yuan per cubic meter will be offered for heating purposes, with a maximum annual subsidy volume of 1,200 cubic meters per household. This subsidy will also be split equally among the provincial, municipal, and county levels, with each responsible for one-third of the cost. The subsidy policy and its corresponding standards are initially set for a period of three years. Furthermore, a construction subsidy of up to 4,000 yuan per household will be provided for building in-home gas pipelines within villages. Of this amount, the province will cover 1,000 yuan, while the city and county governments will jointly contribute the remaining 3,000 yuan.
3. Subsidy Standards for Coal-Fired Boiler Retrofitting
Subsidy funds are provided for the renovation and phasing out of coal-fired boilers: ¥30,000 per steam ton for those individually banned and dismantled, and ¥80,000 per steam ton for projects that transition to clean energy.
4. Subsidy Standards for Retiring and Phasing Out Coal-Fired Power Plants
Provincial governments will provide a subsidy of 300 yuan per kilowatt for decommissioned generating units, a measure already included in the national "13th Five-Year Plan." However, this incentive does not apply to units slated for elimination under the plan, those built in violation of regulations, units reaching the end of their operational lifespan, or those opting for electricity capacity indicator trading.

[Henan] Henan Province's Latest Funding Subsidy Standards for the 2018 Coal-Fired Boiler Retrofit and Remediation Program
Before the release of the "Henan Province 2018 Action Plan for Tough Battle Against Air Pollution," Henan Province had not yet introduced specific subsidy standards for boilers. Instead, individual cities and counties in Henan had independently issued local guidelines outlining subsidies for coal-fired boiler upgrades and low-ammonia combustion retrofit projects.
Henan Province is implementing a funding subsidy approach that decreases incrementally each year:
1. Coal-fired boilers completed and retrofitted by the end of October 2018 will receive a financial incentive subsidy of no less than 60,000 yuan per steam ton. 2. Coal-fired boilers completed and retrofitted by the end of October 2019 will receive a financial incentive subsidy of no less than 40,000 yuan per steam ton.
— No financial incentives will be provided for coal-fired boilers that have completed the retrofit or replacement by the end of October 2020.
Additionally, the primary methods for phasing out boilers this time include demolition and retirement, replacement with centralized heating systems, coal-to-gas conversion, and coal-to-electricity conversion. Alternative options like geothermal, wind energy, solar power, and biomass energy equipped with baghouse dust collectors are also encouraged. However, conversions to clean-coal types such as clean coal briquettes, coal-water slurry, anthracite, semi-coke, green coke, or crude oil are excluded. Notably, for coal-fired boilers undergoing these transitions, it is mandatory to either demolish the chimney entirely or physically disconnect the flue ducts, ensuring they cannot be restarted under any circumstances. Furthermore, the use of decommissioned or retired old coal-fired boilers to fraudulently obtain subsidies or incentives is strictly prohibited. During the transition from coal to natural gas, coal-fired boilers must simultaneously undergo low-nitrogen emission upgrades.
[Shandong] Shandong Government Subsidy Standards for Ultra-Low Emission Retrofit of Coal-Fired Boilers
To accelerate the pace of ultra-low emission upgrades for coal-fired generating units (boilers) across the province and further improve air quality, Shandong Province has, building on two consecutive years of securing 426 million yuan in funding to implement incentive policies, expanded the scope of financial incentives this year by allocating an additional 200 million yuan. These funds will reward cities that performed particularly well in completing their tasks in 2016, ensuring that by the end of 2018, all provincial coal-fired generating units of 100 MW or larger, as well as individual coal-fired boilers exceeding 10 steam tons per hour, will have undergone ultra-low emission upgrades.
It is understood that the incentive funds are divided into two parts: - First, a reward of 101.26 million yuan is allocated for ultra-low emission upgrades of coal-fired generating units. This funding will be disbursed based on the scale of completed and accepted ultra-low emission upgrades for coal-fired units below 100 MW in each city, at a rate of 35,000 yuan per MW. - Second, 90 million yuan is earmarked as an incentive for ultra-low emission upgrades of coal-fired boilers. The allocation will depend on the proportion of coal-fired boilers above 10 steam tons/hour in each city that have already been successfully accepted relative to the total acceptance target. Cities achieving a completion rate of at least 40% and ranking among the top three in the province will receive a reward of 30 million yuan each. By leveraging the guiding and incentivizing power of fiscal funds, this initiative aims to encourage cities to accelerate their upgrade efforts, achieve early emission reductions, and reap the benefits promptly—ensuring that the province meets its ultra-low emission targets with both quality and quantity intact.
Coal-fired boiler retrofitting has become a consensus. Zhengzhou Boiler Factory can help achieve energy savings, reduce consumption, and minimize emissions by implementing energy-efficient upgrades to existing coal-fired boilers. Moreover, if the current coal-fired boilers already have low energy consumption and have been in operation for an extended period, Zhengbo can tailor-make customized retrofit solutions specifically designed for each boiler’s unique conditions.

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Nationwide Policies and Funding Subsidy Standards for the Renovation and Management of Coal-Fired Boilers in All Provinces and Cities

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