Residential solar photovoltaic (PV) installations have boomed in China over recent years. However, knowledge about the economic performance of residential PV investments is still limited. Therefore, this study attempts to make a complete economic assessment of residential PV systems at the county-level.
Most of the country's distributed solar photovoltaics are installed in the eastern and southern parts of China, where the economy is prosperous and demand for power is greater, including in Zhejiang, Shandong, Jiangsu and Anhui provinces.
This paper evaluated the economic performance of residential PV systems at the county-level under the background where the subsidies for solar PV generation are phasing out quickly in China, using scenario analysis and sensitivity analysis. It is found that residential PV investments have broken even all over China, even without any incentives.
In 2019, China's newly installed grid-connected photovoltaic capacity reached 30.1GW, a year-on-year decrease of 31.99%, of which the installed capacity of centralized photovoltaic power plants was 17.9GW, a year-on-year decrease of 22.9%; the installed capacity of distributed photovoltaic power plants was 12.2GW, a year-on-year increase of 17.3%.
As shown in , since 2013, China’s newly added distributed photovoltaic installed capacity have fluctuated upward, and reached 29.28 GW by 2021, accounting for 53.4% of the total, and exceeding the centralized photovoltaic system for the first time in history.
They are mainly located in North China, northeast China, and South China. Table 6. IRR and PBP projected for residential PV systems without subsidies and with residential electricity prices at the first tier in China in 2021 (Unit: area). All the areas have a PBP not longer than 24 years.
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