The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

Residential Solar PV Systems Experiencing Slow Adoption in China

China launched a series of policies at end of 2012 to encourage the deployment of residential solar photovoltaic (PV) systems that can generate sufficient power for one household. In the few months after the roll out of these policies, thousands of interested individuals contacted the State Grid Corporation of China to get more information about this novel form of power supply.

However, as of May 17 of this year, only 25 home PV power stations are in the process of installation across Jiangsu province, with a total installed capacity of 154.7 kW.

Several obstacles hobble the effort:

Roof Space: According to regulations, the purchaser needs to obtain permission of his or her neighbors and of the owners committee of the residential community before installing a home PV power station on the roof. This permission has proven difficult to obtain.

Purchase and Installation of PV Equipment: Residents who want to install their own PV systems must purchase and install the equipment. This is proving impractical as the installation process is complex. In addition, few equipment providers are willing to sell and install such systems for individuals, as the small number of interested home owners and apartment dwellers are scattered across the country and field conditions at each installation site widely differ.

ROI Difficulty: Return on investment is the greatest concern of individuals considering a resdiential solar system. Most potential consumers gave up after learning how long it will take to recover the cost. Generally speaking, a 3-kW system costs 45,000 yuan (approx. US$7,500), and is able to generate 3,600 kWh of power a year. Based on the current electricity price of approximately 0.5 yuan (roughly US$0.08) per kWh in China, it will take more than 20 years to recover the cost, and the lifetime of a photovoltaic panel runs approximately 25 years.

No Policy Support: As an emerging power source, residential PV will need policy support from the Chinese government. The experience in other countries suggests that fast development of the novel power source will rely on high subsidies and supportive policies from the government. Denmark, a country with one of the highest levels of efficiency in energy utilization, requires as part of its Electric Power Law that power utilities give priority to purchasing electricity generated by renewable energy-based power generation organizations, and that consumers have the duty to give priority to using power generated from renewable energy.

The Chinese government encourages and promotes adoption of home PV power systems, and is trying to find a way to address these challenges. As an example, it has supported the development of a plug-and-play PV power generation device that can be easily installed on a balcony or attached to a window.

The Chinese government, however, has not yet developed a specific subsidy policy for home power stations. Sources have revealed that the country’s National Development and Reform Commission has reached a preliminary consensus on subsidies at different levels to distributed PV power generation systems (including residential), in an effort to drive energy conservation and emission reduction.

Lead image: Solar rooftop via Shutterstock

Untitled Document

RELATED ARTICLES

Hybrid solar minigrid to power Tanzanian island village

Tildy Bayar

A hybrid solar photovoltaic-battery energy storage-diesel minigrid project aims to provide power for around 400 households in the remote island village of Lake Victoria (pictured) in Tanzania. 

World Moves Toward 100 Percent Renewable Energy – First Electricity, Then Heating/Cooling, and Finally Transportation

Junko Movellan, Correspondent The exclusive use of energy from renewable resources in at least one sector has now become a feasible goal for 8 countries. Diane Moss, Founding Director of Renewables 100 Policy Institute, discussed this remarkable develop...

Solar power growth impacting UK electricity sector

Diarmaid Williams

Q2 of 2015 saw a large increase in the generation of electricity from solar PV in the UK, with the growth having a significant impact on electricity market prices and other supply factors.

PACE Finance Opening Doors for C&I Solar In California

Susan Kraemer, Correspondent With its excellent renewable policy, California leads the nation in solar. Over the years both the Renewable Portfolio Standard and the California Solar Initiative drove utility scale and residential solar deployment. But w...
Nanjing Shanglong Communications Liu Yuanyuan is Director of Operations and Co-Founder of Nanjing Shanglong Communications. Liu Yuanyuan previously held the position of office manager at the London Financial Times' China translation and editoria...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Grid-connected and Off-grid Photovoltaics

This training covers all aspects of planning, installation, maintenance,...

5th Annual Hydro Plant Maintenance

Join maintenance professionals to discuss the challenges in maintenance ...

2015 Green Energy Expo

Stop by and visit Canadian Solar at the Green Energy Expo in Mexico City!

COMPANY BLOGS

Prevailing At A Premium

As efficiency sales professionals, we’re often faced with situatio...

Do Your Goals Match Your Values?

Before you set goals for your company or your personal work performance ...

LSX rises with sustainable wine making in Mexico

his custom LSX solar canopy shades the upper deck organic gard...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS