Analysis of Distributed-Generation Photovoltaic Deployment, Installation Time and Cost, Market Barriers, and Policies in China

Fang Zhang, Hao Deng, Robert Margolis, Jun Su

Research output: Contribution to journalArticlepeer-review

101 Scopus Citations

Abstract

Beginning in 2013, China's photovoltaic (PV) market-development strategy witnessed a series of policy changes aimed at making distributed-generation PV (DG PV) development an equal priority with large-scale PV development. This article reviews the DG PV policy changes since 2013 and examines their effect on China's domestic DG PV market. Based on a 2014 survey of DG PV market and policy participants, we present cost and time breakdowns for installing DG PV projects in China, and we identify the main barriers to DG PV installation. We also use a cash flow model to determine the relative economic attractiveness of DG PV in several eastern provinces in China. The main factors constraining DG PV deployment in China include financial barriers resulting from the structure of the self-consumption feed-in tariff (FIT), ambivalence about DG PV within grid companies, complicated ownership structures for buildings/rooftops/businesses, and the inherent time lag in policy implementation from the central government to provincial and local governments. We conclude with policy implications and suggestions in the context of DG PV policy changes the Chinese government implemented in September 2014.

Original languageAmerican English
Pages (from-to)43-55
Number of pages13
JournalEnergy Policy
Volume81
DOIs
StatePublished - 2015

Bibliographical note

Publisher Copyright:
© 2015 Elsevier Ltd.

NREL Publication Number

  • NREL/JA-6A20-64050

Keywords

  • Distributed generation
  • Feed-in tariff (FIT)
  • Photovoltaic
  • Self consumption
  • Soft cost
  • Solar

Fingerprint

Dive into the research topics of 'Analysis of Distributed-Generation Photovoltaic Deployment, Installation Time and Cost, Market Barriers, and Policies in China'. Together they form a unique fingerprint.

Cite this