The National Energy Administration held a special meeting on photovoltaics yesterday afternoon, focusing on advancing and supporting innovations in photovoltaic development policies and financing models. Key topics included enhancing the implementation and management of both distributed and ground-mounted power projects. It is anticipated that new supportive policies will be announced by the end of the month.
One of the major outcomes of the meeting was the expansion of the definition of distributed photovoltaics, which aims to simplify the distinction between self-consumption and surplus power. This move lays the foundation for a more flexible business model where direct users can benefit directly from their energy production. The initiative also includes connecting medium- and low-voltage grids under 35 kV to the main grid, and incorporating projects such as barren hills, wastelands, agricultural greenhouses, and fish ponds with a capacity of up to 20,000 kW into the distributed PV scope. These projects will now be eligible for the same subsidized electricity rates as ground-mounted power stations.
In terms of financing, the administration encourages financial institutions and project owners to explore innovative funding solutions. Supportive policies are expected to be issued in collaboration with local governments in pilot regions.
Industry experts believe that achieving the annual target of 8 GW for distributed PV under the current policy framework remains challenging and may require further policy adjustments. Wang Sicheng, a researcher at the National Development and Reform Commission's Energy Research Institute, has repeatedly emphasized the need to better coordinate the interests of all parties involved in the self-consumption and surplus power access model. Issues such as unclear billing processes, uncertain project returns, difficulty in securing financing, and transaction risks continue to pose obstacles.
Many industry insiders view the proposals made during yesterday’s meeting as highly practical. Under the current system, where the distributed electricity subsidy rate is not increased, the distributed quota will now enjoy the same subsidized electricity price as ground-mounted power stations, leading to clearer return on investment. PV owners will also have the flexibility to choose their preferred business model, bringing the distributed direct-grid connection model closer to that of traditional power stations.
On the financing front, provinces like Shaanxi and Guangdong have introduced measures encouraging social capital to invest in photovoltaic projects and pilot innovative financing approaches. Ding Wenlei, executive director of Hangyang Solar, told reporters that several local governments have already engaged in multiple meetings with major financial institutions, and it is expected that specific innovation support policies will be released by July at the latest. He believes these policies will significantly enhance the development of distributed power stations, refine subsidy mechanisms, and improve investor returns.
The outlook for distributed PV is promising, with some listed companies already taking proactive steps to expand their presence in this sector. Wu Hao, deputy general manager of Aerospace Electromechanical, mentioned that the company is actively seeking a distributed business model this year. Currently, there are 5MW villa-based projects around Shanghai that will serve as demonstration sites. Linyang Electronics, known for its expertise in electricity settlement and grid coordination, aims to become the largest distributed operator in the eastern region. Additionally, Yijing Optoelectronics' fish-light complementary project is setting industry benchmarks, and they have extensive experience in distributed projects at Dongfang Risheng Agricultural Greenhouses. Qiu Chengfeng, head of the company’s new energy power division, highlighted that key breakthroughs are expected this year in projects across Jiangsu, Zhejiang, Huadong, and Hubei.
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