Distributed PV projects look forward to supporting policies

**Abstract:** Recently, Wu Xinxiong, deputy director of the National Development and Reform Commission, highlighted that policy support for the photovoltaic (PV) industry has slowed down, yet the sector remains a hot topic in the market. Despite this renewed attention, the impact of recent policies on the domestic PV application market is still limited. The introduction of distributed PV subsidies and the establishment of demonstration zones have generated interest, but many projects are struggling to move forward due to various challenges. The first batch of national distributed PV demonstration projects, announced recently, has seen little progress in the months following their launch. This issue is not only affecting non-demonstration areas but also those with policy advantages. Whether in a designated zone or not, financing remains a major obstacle for developers. Currently, the cost of PV modules is around 8 yuan per watt, making the construction of a 1 MW commercial project approximately 8 million yuan—a significant investment for many companies. While the China Development Bank (CDB) has introduced financial support policies for distributed PV projects, including pilot programs like green energy counties and demonstration zones, the details remain unclear. Specifically, loan conditions and interest rates have not been clearly defined, raising concerns among small and medium enterprises (SMEs) about their ability to access preferential financing compared to larger state-owned enterprises and listed companies. Shen Fuxin, secretary-general of the Zhejiang Photovoltaic Association, noted that distributed PV projects are expected to become the mainstream in the future. However, with a long payback period of 7–8 years, it's unrealistic to expect module manufacturers to take the lead. Instead, Shen suggests that third-party service providers could play a key role by managing the development, operation, and maintenance of these projects. These organizations can share future profits with project owners after covering the high initial costs. Another critical issue is the complexity of the approval process. A representative from a PV module manufacturing company shared his frustration over the lengthy procedures required to build a 1.7 MW rooftop PV system. According to him, there are 19 steps involved, including approvals from local and provincial Development and Reform Commissions, as well as the power company. He believes that shifting to a filing system would significantly speed up the process. Individuals also face similar hurdles. Chen Jilin, the first person in Shanghai to receive a feed-in tariff for his PV system, mentioned that while media coverage inspired others, few actually took action. Many were discouraged by the complicated administrative procedures. Although his project was approved through a simplified process by the local power company, the overall approval system for residential PV projects still needs streamlining. In conclusion, while the PV industry continues to attract attention, real-world implementation faces significant challenges, including financing difficulties, long payback periods, and complex regulatory processes. Addressing these issues will be crucial for the sustainable growth of the domestic PV market.

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