The National Energy Administration held a special meeting on photovoltaics yesterday afternoon, focusing on advancing innovative policies and financing models for solar energy development. Key topics included enhancing the implementation and management of both distributed and ground-mounted power projects. It is anticipated that a new support policy will be officially released by the end of this month.
One of the major highlights from the meeting was the expansion of the definition of distributed photovoltaic (PV) systems. The concept of self-consumption and surplus power will be softened, paving the way for a more flexible business model where end-users can directly connect to the grid. Projects such as barren hills, wastelands, agricultural greenhouses, and fish ponds with a capacity of up to 20,000 kW will now be included in the distributed PV scope, and will be eligible for the same subsidized electricity rates as local ground-mounted power stations.
In terms of financing, financial institutions and project owners are encouraged to explore new funding mechanisms tailored to different types of solar projects. The Energy Bureau plans to roll out supportive policies in collaboration with local governments in pilot regions.
Industry experts believe that the current policy framework makes it challenging to meet the annual target of 8 GW for distributed PV installations, suggesting that further policy adjustments may be necessary. Wang Sicheng, a researcher at the National Development and Reform Commission's Energy Research Institute, has repeatedly emphasized the need for better coordination among stakeholders in the self-sufficiency and surplus electricity access model. Issues such as unclear billing, uncertain project returns, difficulty in securing financing, and transaction risks remain significant barriers.
Many industry insiders view the proposals from the Energy Bureau as practical and actionable. Under the current system, where the distributed electricity price subsidy remains unchanged, the distributed quota will now benefit from the same subsidized rates as ground-mounted power plants, making investment returns more predictable. PV owners will also have greater flexibility in choosing their business models, with the direct grid connection approach closely resembling that of traditional power stations.
Regarding financing, provinces like Shaanxi and Guangdong have already introduced measures to attract social capital into solar projects and pilot innovative financing methods. Ding Wenlei, executive director of Hangyang Solar, mentioned that several local governments have already engaged in multiple meetings with major financial institutions, and the innovation support policy is expected to be fully implemented by July at the latest. He believes that the new initiative will significantly enhance the construction of distributed power stations, refine subsidy policies, and improve overall investment returns.
The outlook for distributed solar energy is promising, with several listed companies actively expanding their presence in this space. Wu Hao, vice president of Aerospace Electromechanical, stated that the company is focusing on developing a distributed business model this year. They currently have a 5 MW villa project near Shanghai, which will serve as a demonstration site. Linyang Electronics, with its strong capabilities in electricity settlement and grid cooperation, aims to become the largest distributed operator in the eastern region. Meanwhile, Yijing Optoelectronics' fish-and-solar hybrid project is setting industry benchmarks, and they have extensive experience in greenhouse-based distributed projects under Dongfang Risheng. Qiu Chengfeng, head of the company’s new energy power division, revealed that key breakthroughs are expected in projects across Jiangsu, Zhejiang, Huadong, and Hubei this year.
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