Innovative business models and financing mechanisms for distributed solar PV (DSPV) deployment in China

The Chinese government has in recent years put in place a large number of incentive policies for distributed solar PV (DSPV). However, some of these policies have not been well performed due to many constraints, particularly the lack of innovative business models and financing mechanisms. This paper looks into this issue through the approach of combining literature review and interactive research, including interactions with managers from China's policy and commercial banks and PV projects. A comprehensive literature review on DSPV business models and financing mechanisms are firstly reviewed. Then the rapid evolving business models and financing mechanisms in the United States are examined, which provides some insights for China. Subsequent to this, the existing innovative business models and financing mechanisms for DSPV deployment in China and challenges facing them are discussed. Built on this discussion, policy recommendations are provided at the end of the paper. This study provides some insights for renewable energy policy makers in China as well as in other countries.