Financing risks involved in distributed PV power generation in China and analysis of countermeasures

The PV Industry is a strategic emerging industry in China. With extensive application, easy local accommodation and little impact on the power grid, distributed PV power generation is viewed as a major way of PV power generation in the future. In recent two years, the Chinese government has rolled out policies concerning distributed PV power generation, in the hope to quickly expand the domestic market, ease the impact on the PV industry from global market fluctuations and reduce the excess capacity of the PV industry. However, distributed PV power generation faces complex financing problems at home with the unclear definition of rooftop property rights, risks in PV power generation policies, risks in the access to power grids and uncertainties in profitability. The paper summarizes that China must improve laws, polices and management institution to dissolve the financing risks related to distributed PV power generation.