A New Feed-in-tariff Pricing Approach of Distributed Photovoltaic Generation in China

Recently, distributed photovoltaic generation has developed rapidly, however the pricing mechanisms are still not mature enough. In China, benchmark price policy based on resource regions is carried out, and distributed photovoltaic generation is uniform subsidized according to the whole power at present. In this paper, taking the technical features and cost characteristics of distributed photovoltaic generation into account, a new feed-in-tariff pricing approach is proposed on the basis of “cost plus profit”, and adopted to distinguish different resource regions and user types. Pricing model is given and simulated for residential and commercial user respectively. At last, sensitivity analysis of some important factors is carried out. The study can provide a good reference for the formulation of reasonable pricing mechanism, and contribute to the development of distributed photovoltaic power.