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Commercial PV Rooftop Market in China Set for Strong Growth

Recently, the Chinese Bureau of Energy released the first batch of the Distributed PV Generation Application Demonstration parks. More than 1.8 GW of solar PV pipeline was approved, out of which up to 750 MW may begin construction within this calendar year.

Until now, financing and tariff distribution timeliness have been major barriers for developer groups. Sources say that additional policies will be established in the second half of year to lower these barriers.

All sixteen commercial developer groups and two utility developer groups can now receive FITs of CNY 0.42/kWh, in addition to the desulfurization tariff. In some regions, such as Jiangsu and Anhui, developer groups can also receive extra rebates.

The prioritization for self-consumption of PV power generation by the Bureau of Energy appears clear now. This should accelerate the completion of approved pipelines and will help to grow the rooftop segment of the Chinese PV market significantly in the next few quarters.

Figure 1: First Batch of Distributed PV Generation Application Demonstration Parks by regions (MW)

Source: NPD Solarbuzz

Figure 2: All developer groups have promised to use no less than 70% of their PV power generation

Source: NPD Solarbuzz

 

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