
Recently, Wang Sicheng, a researcher at the National Development and Reform Commission's Energy Research Institute, disclosed that the National Energy Administration is set to release the "Distributed Photovoltaic Power Generation Project Management Measures" in November. This new regulation aims to address challenges in the distributed photovoltaic power sector, clarify the scope of application for such projects, and define the construction scale for each province.
Wang made these comments during the Fifth China (Wuxi) International New Energy Conference. He explained that currently, only 18 demonstration zones are eligible for distributed solar subsidies, while other regions must wait for the official release of the new policy and the allocation of provincial subsidy quotas. According to him, the policy rollout is expected to begin next year, and it is unlikely that all provinces will receive subsidies this year.
He further emphasized that the upcoming measures will clearly outline which portion of the electricity price will be covered by the subsidy and how distributed photovoltaic projects will be funded. This level of detail is essential for creating a more transparent and predictable environment for developers and investors.
Prior to this announcement, several industry sources from the photovoltaic sector told the Great Wisdom News Agency that the lack of clear implementation guidelines and financial support mechanisms has hindered the large-scale development of distributed solar projects. Without concrete rules, many stakeholders remain hesitant to invest.
In late August, the National Development and Reform Commission announced a feed-in tariff subsidy of 0.42 yuan per kWh for distributed photovoltaic systems. However, the absence of detailed implementation procedures has left the market in limbo. Wu Dacheng, vice chairman of the Photovoltaic Committee at the Chinese Renewable Energy Society, recently stated that this year’s installed capacity for distributed solar is unlikely to exceed 3 GW, falling short of the initial target of 5 GW.
Wu also pointed out that the current framework lacks crucial supporting rules, such as detailed metering procedures, billing standards, and grid connection modes. These missing elements increase the risks associated with distributed photovoltaic development, making it less attractive for both businesses and investors. With clearer policies and better support structures in place, the sector could see much stronger growth in the coming years.
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