Distributed PV projects look forward to supporting policies

**Abstract:** Recently, Wu Xinxiong, the deputy director of the National Development and Reform Commission, mentioned that policy implementation has slowed down, but the photovoltaic (PV) industry is once again drawing significant market attention. Despite this, the impact of recent policies on the domestic PV application market remains limited. The introduction of new subsidy pricing for distributed photovoltaic power generation, along with the announcement of demonstration zones, has rekindled interest in the sector. However, the actual effects of these policies are still not fully realized. The government has taken several steps to promote distributed PV projects, including setting subsidy rates and launching demonstration zones. These initiatives, combined with Wu’s recent statements, have put the solar industry back in the spotlight. Still, many challenges persist, especially in terms of project implementation and financial support. **Financing Challenges Remain a Major Hurdle** According to reports, among the 18 first batch of national distributed PV application demonstration zones, most projects have yet to start more than a month after their announcement. This issue is even more pronounced in regions not included in the official list. Whether in a designated zone or not, financing problems continue to be a major barrier for PV projects. Currently, the price of photovoltaic modules stands at around 8 yuan per watt. For a 1-megawatt enterprise-level project, the total construction cost can reach approximately 8 million yuan — a significant sum for many small and medium-sized enterprises. While the China Development Bank offers financial support for distributed PV projects, the specific loan conditions and interest rates remain unclear. Industry insiders express concerns that small businesses may struggle to access preferential loans compared to large state-owned enterprises and listed companies. Shen Fuxin, the secretary-general of the Zhejiang Photovoltaic Association, stated that distributed PV projects are expected to become the mainstream of future solar applications. However, due to the long payback period — typically 7 to 8 years — it is unrealistic to expect module manufacturers to take the lead in promoting such projects. Instead, he suggests that third-party service organizations should play a key role in developing, constructing, operating, and maintaining these projects. These entities could share future profits with project owners after overcoming the high initial costs. **Approval Procedures Need Streamlining** Even when funding is available, the approval process for distributed PV projects remains a major obstacle. A manager from a PV module manufacturing company shared his frustration about trying to install a 1.7 MW rooftop PV system. He found the procedures extremely complicated, involving 19 steps, including approvals from the local and provincial Development and Reform Commissions and the local power company. He suggested that changing the approval system to a filing-based model would significantly speed up the process. This sentiment is echoed by individuals as well. Chen Jilin, the first person in Shanghai to receive a feed-in tariff for his rooftop PV system, noted that while media coverage increased interest, few people actually followed through. Many were discouraged by the complex approval procedures. Chen's project was approved under a simplified process by the local power company, which serves as a rare example of efficiency. However, the overall approval system for individual PV projects still needs improvement. Streamlining the process could encourage more participation and accelerate the growth of the distributed PV market.

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