On Friday, Wang Sicheng, a researcher at the National Energy Research Institute under the National Development and Reform Commission, revealed that the National Energy Administration is set to introduce the "Distributed Photovoltaic Power Generation Project Management Measures" in November. The new policy aims to address key challenges such as financing for distributed photovoltaic (PV) projects and to define the scope and scale of PV development across different provinces. His comments were made during the Fifth China (Wuxi) International New Energy Conference.
According to Wang, only 18 pilot zones will currently be eligible for distributed PV subsidies, while other regions must wait for the full implementation of the new regulations and provincial subsidy frameworks. He mentioned that these policies are expected to take effect next year, and it's unlikely that subsidies will be available this year. The measures will clarify which parts of the system will use feed-in tariffs and which will rely on distributed subsidies, providing much-needed clarity for developers and investors.
Previously, industry experts have pointed out that the lack of clear implementation rules and financial support mechanisms has hindered the large-scale development of distributed PV. Despite the announcement in late August that the government would subsidize distributed PV electricity at 0.42 yuan per kWh, the absence of detailed guidelines has slowed market growth. As a result, the distributed PV market has barely taken off.
Wu Cheng, deputy director of the Photovoltaic Committee at the China Renewable Energy Society, recently noted that the installed capacity of distributed PV is expected to fall short of the annual target of 5GW, with estimates now hovering around 3GW. Wu Dacheng, another industry expert, emphasized that the lack of standardized rules—such as those governing metering, billing, and financing—has created significant risks for developers, further discouraging investment in the sector.
With the upcoming policy release, there is hope that clearer guidelines will finally stimulate broader adoption of distributed solar power across China.
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