IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v81y2015icp43-55.html
   My bibliography  Save this article

Analysis of distributed-generation photovoltaic deployment, installation time and cost, market barriers, and policies in China

Author

Listed:
  • Zhang, Fang
  • Deng, Hao
  • Margolis, Robert
  • Su, Jun

Abstract

Beginning in 2013, China's photovoltaic (PV) market-development strategy witnessed a series of policy changes aimed at making distributed-generation PV (DG PV) development an equal priority with large-scale PV development. This article reviews the DG PV policy changes since 2013 and examines their effect on China's domestic DG PV market. Based on a 2014 survey of DG PV market and policy participants, we present cost and time breakdowns for installing DG PV projects in China, and we identify the main barriers to DG PV installation. We also use a cash flow model to determine the relative economic attractiveness of DG PV in several eastern provinces in China. The main factors constraining DG PV deployment in China include financial barriers resulting from the structure of the self-consumption feed-in tariff (FIT), ambivalence about DG PV within grid companies, complicated ownership structures for buildings/rooftops/businesses, and the inherent time lag in policy implementation from the central government to provincial and local governments. We conclude with policy implications and suggestions in the context of DG PV policy changes the Chinese government implemented in September 2014.

Suggested Citation

  • Zhang, Fang & Deng, Hao & Margolis, Robert & Su, Jun, 2015. "Analysis of distributed-generation photovoltaic deployment, installation time and cost, market barriers, and policies in China," Energy Policy, Elsevier, vol. 81(C), pages 43-55.
    • Handle: RePEc:eee:enepol:v:81:y:2015:i:c:p:43-55
    DOI: 10.1016/j.enpol.2015.02.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421515000737
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2015.02.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Radu Dan Rugescu (ed.), 2010. "Solar Energy," Books, IntechOpen, number 621, January-J.
    2. Grau, Thilo & Huo, Molin & Neuhoff, Karsten, 2012. "Survey of photovoltaic industry and policy in Germany and China," Energy Policy, Elsevier, vol. 51(C), pages 20-37.
    3. Zhi, Qiang & Su, Jun & Ru, Peng & Anadon, Laura Diaz, 2013. "The evolution of China's National Energy RD&D Programs: The role of scientists in science and technology decision making," Energy Policy, Elsevier, vol. 61(C), pages 1568-1585.
    4. Zhao, Zhen-yu & Zhang, Shuang-Ying & Hubbard, Bryan & Yao, Xue, 2013. "The emergence of the solar photovoltaic power industry in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 229-236.
    5. Wang, Qiang & Qiu, Huan-Ning, 2009. "Situation and outlook of solar energy utilization in Tibet, China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(8), pages 2181-2186, October.
    6. Zhang, Xilin & Kumar, Ashok, 2011. "Evaluating renewable energy-based rural electrification program in western China: Emerging problems and possible scenarios," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 773-779, January.
    7. Byrne, John & Zhou, Aiming & Shen, Bo & Hughes, Kristen, 2007. "Evaluating the potential of small-scale renewable energy options to meet rural livelihoods needs: A GIS- and lifecycle cost-based assessment of Western China's options," Energy Policy, Elsevier, vol. 35(8), pages 4391-4401, August.
    8. Zhang, Da & Chai, Qimin & Zhang, Xiliang & He, Jiankun & Yue, Li & Dong, Xiufen & Wu, Shu, 2012. "Economical assessment of large-scale photovoltaic power development in China," Energy, Elsevier, vol. 40(1), pages 370-375.
    9. Zhang, Sufang & Andrews-Speed, Philip & Ji, Meiyun, 2014. "The erratic path of the low-carbon transition in China: Evolution of solar PV policy," Energy Policy, Elsevier, vol. 67(C), pages 903-912.
    10. Huo, Mo-lin & Zhang, Dan-wei, 2012. "Lessons from photovoltaic policies in China for future development," Energy Policy, Elsevier, vol. 51(C), pages 38-45.
    11. Zhao, Ruirui & Shi, Guang & Chen, Hongyu & Ren, Anfu & Finlow, David, 2011. "Present status and prospects of photovoltaic market in China," Energy Policy, Elsevier, vol. 39(4), pages 2204-2207, April.
    12. Liu, Li-qun & Wang, Zhi-xin & Zhang, Hua-qiang & Xue, Ying-cheng, 2010. "Solar energy development in China--A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 301-311, January.
    13. Li, Zhi-Sheng & Zhang, Guo-Qiang & Li, Dong-Mei & Zhou, Jin & Li, Li-Juan & Li, Li-Xin, 2007. "Application and development of solar energy in building industry and its prospects in China," Energy Policy, Elsevier, vol. 35(8), pages 4121-4127, August.
    14. Zhao, Zhen-yu & Zhang, Shuang-ying & Zuo, Jian, 2011. "A critical analysis of the photovoltaic power industry in China – From diamond model to gear model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4963-4971.
    15. Zhang, Sufang & He, Yongxiu, 2013. "Analysis on the development and policy of solar PV power in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 393-401.
    16. Rigter, Jasper & Vidican, Georgeta, 2010. "Cost and optimal feed-in tariff for small scale photovoltaic systems in China," Energy Policy, Elsevier, vol. 38(11), pages 6989-7000, November.
    17. Sun, Honghang & Zhi, Qiang & Wang, Yibo & Yao, Qiang & Su, Jun, 2014. "China’s solar photovoltaic industry development: The status quo, problems and approaches," Applied Energy, Elsevier, vol. 118(C), pages 221-230.
    18. Zhi, Qiang & Sun, Honghang & Li, Yanxi & Xu, Yurui & Su, Jun, 2014. "China’s solar photovoltaic policy: An analysis based on policy instruments," Applied Energy, Elsevier, vol. 129(C), pages 308-319.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Lingxian & Wang, Jieqiong & Wen, Haojie & Fu, Zetian & Li, Xinxing, 2016. "Operating performance, industry agglomeration and its spatial characteristics of Chinese photovoltaic industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 373-386.
    2. Wang, Yu & Zhou, Sheng & Huo, Hong, 2014. "Cost and CO2 reductions of solar photovoltaic power generation in China: Perspectives for 2020," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 370-380.
    3. Corwin, Samuel & Johnson, Timothy L., 2019. "The role of local governments in the development of China's solar photovoltaic industry," Energy Policy, Elsevier, vol. 130(C), pages 283-293.
    4. Ming, Zeng & Shaojie, Ouyang & Hui, Shi & Yujian, Ge, 2015. "Is the “Sun” still hot in China? The study of the present situation, problems and trends of the photovoltaic industry in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 1224-1237.
    5. Fang, Yiping & Wei, Yanqiang, 2013. "Climate change adaptation on the Qinghai–Tibetan Plateau: The importance of solar energy utilization for rural household," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 508-518.
    6. Kayser, Dirk, 2016. "Solar photovoltaic projects in China: High investment risks and the need for institutional response," Applied Energy, Elsevier, vol. 174(C), pages 144-152.
    7. Yuan, Jiahai & Sun, Shenghui & Zhang, Wenhua & Xiong, Minpeng, 2014. "The economy of distributed PV in China," Energy, Elsevier, vol. 78(C), pages 939-949.
    8. Zhou, Dequn & Chong, Zhaotian & Wang, Qunwei, 2020. "What is the future policy for photovoltaic power applications in China? Lessons from the past," Resources Policy, Elsevier, vol. 65(C).
    9. Liu, Chang & Liu, Linlin & Zhang, Dayong & Fu, Jiasha, 2021. "How does the capital market respond to policy shocks? Evidence from listed solar photovoltaic companies in China," Energy Policy, Elsevier, vol. 151(C).
    10. Ruyin Long & Wenhua Cui & Qianwen Li, 2017. "The Evolution and Effect Evaluation of Photovoltaic Industry Policy in China," Sustainability, MDPI, vol. 9(12), pages 1-40, November.
    11. Zhang, Sufang, 2016. "Analysis of DSPV (distributed solar PV) power policy in China," Energy, Elsevier, vol. 98(C), pages 92-100.
    12. Zhang, Sufang & He, Yongxiu, 2013. "Analysis on the development and policy of solar PV power in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 393-401.
    13. Huang, Ping & Negro, Simona O. & Hekkert, Marko P. & Bi, Kexin, 2016. "How China became a leader in solar PV: An innovation system analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 777-789.
    14. Urban, Frauke & Geall, Sam & Wang, Yu, 2016. "Solar PV and solar water heaters in China: Different pathways to low carbon energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 531-542.
    15. Shubbak, Mahmood H., 2019. "The technological system of production and innovation: The case of photovoltaic technology in China," Research Policy, Elsevier, vol. 48(4), pages 993-1015.
    16. Liu, Dawei & Shiroyama, Hideaki, 2013. "Development of photovoltaic power generation in China: A transition perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 782-792.
    17. Kejia Yang & Johan Schot & Bernhard Truffer, 2020. "Shaping the Directionality of Sustainability Transitions: The Diverging Development Patterns of Solar PV in Two Chinese Provinces," SPRU Working Paper Series 2020-14, SPRU - Science Policy Research Unit, University of Sussex Business School.
    18. Zhang, Sufang & Andrews-Speed, Philip & Ji, Meiyun, 2014. "The erratic path of the low-carbon transition in China: Evolution of solar PV policy," Energy Policy, Elsevier, vol. 67(C), pages 903-912.
    19. Zang, Haixiang & Xu, Qingshan & Bian, Haihong, 2012. "Generation of typical solar radiation data for different climates of China," Energy, Elsevier, vol. 38(1), pages 236-248.
    20. Wang, Hongwei & Zheng, Shilin & Zhang, Yanhua & Zhang, Kai, 2016. "Analysis of the policy effects of downstream Feed-In Tariff on China’s solar photovoltaic industry," Energy Policy, Elsevier, vol. 95(C), pages 479-488.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:81:y:2015:i:c:p:43-55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.