Household Solar Systems: Policy Terms You May Not Know

What is “Full Grid Feed-In”?  

“Full grid feed-in” is another consumption model for distributed residential PV systems. In this model, the PV grid connection is on the grid side of the user’s electricity meter. All electricity generated by the PV system flows into the public grid and is settled at the specified feed-in tariff rate.  

Are Subsidies for “Self-Consumed” Electricity and “Surplus Electricity Fed to the Grid” the Same?  

As per national policies for distributed residential PV systems installed before 2021, a “full electricity subsidy” is applied. This means all electricity generated by the PV system, whether self-consumed or fed back to the grid, is subsidized at the same rate. 

Which Authorities Should Be Consulted Regarding Policies for Distributed Residential PV Systems?  

For questions about policies related to distributed residential PV systems, inquiries should be directed to municipal or county-level energy authorities. The National Energy Administration encourages these local authorities to establish streamlined, one-stop service systems that integrate procedures such as grid connection applications, commissioning, inspections, and subsidy disbursements. This simplifies the process and enhances management efficiency.  

How Are Subsidy Funds for Distributed Residential PV Systems Disbursed to Owners?  

Electricity used by the user is charged at standard rates. Surplus electricity generated by the PV system and fed back into the grid is purchased by grid operators at the local benchmark price for desulfurized coal-fired power. Grid operators are responsible for measuring and recording the electricity generated and surplus fed to the grid. National subsidies for the total electricity generated are disbursed based on this data. Grid operators transfer subsidy funds according to the government’s per-kilowatt-hour subsidy rate and settlement cycles.  

How Should the County-Wide Rooftop Distributed PV Development Pilot Policy Be Understood? 

China has abundant rooftop resources, offering significant potential for distributed rooftop PV development. However, the wide distribution, small scale, and resource fragmentation of rooftops pose challenges for coordination and large-scale development. The county-wide rooftop PV development pilot program aims to mobilize local governments to coordinate rooftop resources, expand the market, and increase the scale of rooftop PV installations.  

 Key Points of the Policy:  

1.Voluntary Participation:  

Participation in the pilot program is voluntary. Local governments decide whether to participate and determine the number of pilot projects based on local conditions. Rooftop owners decide independently whether to install PV systems, considering factors such as structural load capacity and safety.  

2.Pilot Projects Are Not Subject to Approval:  

Local governments are encouraged to develop pilot project proposals that meet the requirements for submission. Submitted proposals are not reviewed or approved by the authorities; instead, local governments organize their implementation based on these proposals.  

3.Clear Roles and Responsibilities:  

Stakeholders should focus on their respective roles. Local governments primarily coordinate rooftop resources, expand market opportunities, and create a favorable business environment. Rooftop owners select developers based on market principles, and government intervention is limited. Grid operators should focus on upgrading distribution networks and ensuring the integration of distributed PV systems to meet electricity consumption needs.  

4.Open and Competitive Market:  

The development of rooftop PV markets should remain open to all qualified enterprises, fostering competition. Companies can participate based on their strengths and capabilities, ensuring a fair market environment.  

5.Continuous Progress:  

Ongoing rooftop PV projects should not be paused or delayed due to the initiation of pilot projects. Local authorities must ensure the continuity of project filings, grid connection processes, and approvals for existing PV projects.  

By leveraging policy support and addressing practical challenges, these initiatives aim to further unlock the potential of rooftop PV systems, fostering the growth of the renewable energy sector.