China's photovoltaic (PV) industry has made significant strides, with Chinese companies occupying 6 to 7 positions among the top 10 global PV module manufacturers. In 2012, China added approximately 4.5 GW of new solar capacity, marking a 66% year-on-year increase and capturing around 14% of the global market share. The industry's total output value surpassed 300 billion yuan, while employment in the sector reached nearly 500,000 people.
For the industry to achieve long-term sustainability, it must embrace a more market-oriented approach and develop robust business models. This transformation requires not only policy support but also structural reforms that encourage innovation and competition.
Jinko Solar CEO Chen Kangping, a representative of the National People’s Congress, emphasized the importance of ensuring that solar power plants are connected to the grid and operate efficiently. The National Energy Administration is currently working on the "Administrative Measures for Priority Access to Renewable Energy Power Generation," which aims to address the challenge of underutilized renewable energy. Additionally, the highly anticipated "Administrative Measures on Renewable Energy Power Quotas" is expected to be implemented soon. These policies will play a crucial role in improving the efficiency and reliability of solar power integration into the grid.
Timely subsidy disbursement is another key factor. A balanced approach should consider the interests of solar power plant operators, grid companies, and electricity generators. Subsidies should be allocated to support grid infrastructure, peak power supply, and solar generation, ensuring that clean energy from solar plants is fully utilized. Prompt payment of electricity price subsidies can significantly boost investor confidence and accelerate the adoption of renewable energy.
Improving the legal framework for distributed power systems is equally important. As China promotes the use of decentralized solar power, it faces challenges such as unclear ownership rights for commercial rooftop installations and standardized compensation mechanisms. Clear regulations are needed to define the responsibilities and rights of both roof owners and power station operators.
Commercialization is a key indicator of marketization. Policies should be introduced to allow power station owners to use the electricity they generate and feed any surplus into the grid. Removing regulatory barriers will help attract private and foreign investment, creating a more competitive and dynamic market environment. This shift will encourage long-term investments in solar projects and foster greater participation from diverse stakeholders.
Finally, detailed implementation guidelines must be clarified to refine existing business models. Issues such as the duration of subsidies, their distribution mechanisms, and land use regulations remain unresolved and need further attention.
Shi Yubo, a member of the Chinese People's Political Consultative Conference (CPPCC), highlighted the need for policy innovation to ensure the sustainable development of China's grid-connected photovoltaic industry. He proposed revising the subsidy mechanism for grid-connected solar power, using benchmark pricing for electricity to better manage the growth of the sector. By adjusting the on-grid electricity prices, the government can effectively control the pace of solar expansion. He also called for deeper research into distributed generation laws, the establishment of fair pricing policies, and the rapid development of application standards for distributed photovoltaics. A compensation system for grid companies accepting solar power should also be put in place to motivate all market participants and ensure a stable and efficient energy transition.
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