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Problems facing residential distributed photovoltaic power (No 146, 2014)


By Xuan Xiaowei, Department of Development Strategy and Regional Economy, Development Research Center of the State Council (DRC), and Du Pinggui, General Office of Qinghai provincial government

Report No 146, 2014 (Total 4645)


Residentially distributed photovoltaic power is a photovoltaic power method with immense potential and the one being promoted for China's future power. Favorable policies for pricing and taxation have been used since 2013, so China's residentially distributed photovoltaic power generation is ready for large-scale development. Its promotion, however, faces certain obstacles, for instance, power grid enterprises showing little interest, energy departments providing limited monitoring and supervision, and too many restrictions on construction. In addition, support for the enterprises involved is insufficient and there are great difficulties in implementing subsidies. And the policies are neither stable nor predictable.

This report offers some policy suggestions as follow:

First, the government should improve the evaluation system and speed up electric power system reforms and look for breakthroughs in renewable energy power generation, including residentially distributed photovoltaic power. Second, it is important that attention should be given to both short-term and long-term goals, and support for ordinary residential users and professional enterprises. Last, the government needs to reinforce policies to create a fair, stable and predictable market environment.