Sha Xiaolin, Chairman of QS: my opinions on development of distributed PV generation

Polaris solar PV net news: the increasingly serious air pollution, smog control has risen to national strategies. To address the environmental crisis, it is imperative to speed up the application of clean energy. Photovoltaic power generation is an important component of clean energy, last year, photovoltaic applications accelerates, the actual total installed 12.92GW. This year, the national arrangements 14GW, one-third per cent of total global installation state subsidies for PV will reach 70 billion this year, such efforts reflect a national high-level recognition and support for the PV industry and its application. The other hand, 8GW 14GW distributed among projects this year, accounted up to 57.2% from 20% last year, ahead of the ground station for the first time, to distributed PV project policy is very clear. But because of the construction of distributed projects are small and scattered, complex instability, especially tariff revenues expected, Northwest power yields than power stations above ground, thus in practice driving the most domestic investors, especially the Central and large investment firms, also tend to invest in Northwest ground station, Bank, financial sector funds to support in distributed solar power projects also took a wait-and-see attitude.

QS total for two years to complete a national solar and photovoltaic integrated roof project 51MW, has passed the State acceptance inspection. The implementation of these projects, so that we understand more about distributed PV, also tried to project all kinds of ups and downs. Here I would like to comment on two ideas about the development of distributed solar power projects and several suggestions.

A development of our PV applications, distributed projects will become mainstream.

Why distributed solar power will become mainstream, I have two comments:

First, from the perspective of economic law, in recent years, large scale photovoltaic power plant main building on the ground in the Northwest Territories, but owing to lack of capacity, local and cannot dissolve, has resulted in grave situation of abandoned light wind up. Continue in the large-scale construction of photovoltaic power plant in Northwest China, will make up a little bit more serious, it was actually a staged overcapacity is a serious waste of resources. Construction of distributed PV projects in Central and eastern areas, one land, two power generation during peak hours and peaks overlap, electricity sales for personal use and Internet connection are all spontaneously dissolve, there is no bottleneck. Drastic shift to distributed PV project is a reasonable layout, an important measure to promote the formation of a virtuous business model.

Second, building solar energy project experience from abroad, who have distributed power plant construction as principal. Germany solar have accounted for 5% of the total energy, distributed projects accounted for 70% of PV projects; the European Union, Australia and other regions and countries have distributed PV as the subject, Japan was distributed PV power station construction combined with the national energy strategy. In China these years ground station development focused on building distributed projects accounts for less than 17%. From the experience of other countries in the coming years we must widen our distributed projects, reducing ground construction projects, distributed project can start from industrial development zone plant first, gradually extended to private homes, and then combined with storage, distributed PV power will become an important source of electricity.

All in all, distributed PV project is imperative for more construction in the coming years, whether you like it or not, just want to continue to make a difference in PV applications, be prepared to focus on the development of distributed PV ready, the banking and finance sector to take measures, promoting the development of distributed solar power projects and reasonable.

II, currently distributed PV urgent three questions:

First, to make distributed PV ROI is currently the most important problem to solve.

First of all, on the basis of the need to ensure the quality and safety, and do their best to reduce the cost of distributed PV power station construction. At present, some good EPC companies has fallen to 6.5 Yuan per watt cost. I think reducing space: components, electrical appliances and installation can continue to reduce costs; design, tendering, supervision and other sectors have to slash their fares; PV companies to highlight technological innovations, new technology to reduce costs. For example, to improve the component cell efficiency, small projects using “string inverter” increase electricity generation to reduce operation and maintenance costs. Our Johnson patented plastic-bonded roof modules installation method, no need to drill holes in the roof, scaffold materials and installation costs can be saved. Johnson developed Solar integrated tile components, aesthetic and practical, can be directly replaced roofing materials. In short, as long as all links working together to control costs, I think, in a few years, roof power station construction costs dropped below the 5.5/w is possible. Lower investment, return on investment can be greatly improved. Secondly, it signed an agreement with the rooftop owners very learned. Johnson begins construction of solar project, with the owner’s agreement essentially rent the roof reinforcement the price discount. Then we changed to spontaneously use graded billing discounts, no roof to pay the rent. The owners of their own use more electricity discount yield more owners are willing and spontaneous use a high proportion of power station, with investors more the electricity revenue, and this creates a win-win result. Third, the project operation and maintenance work must be strengthened. Some enterprises after the completion of the operation and maintenance of the project, such as regular cleaning, through the software components, such as real-time monitoring of electricity problems can be solved. Our preliminary estimate, operations quality electricity to a difference of about 10%. Finally, investment interest cost reduction is the key to improve yields. Great PV projects construction funds, interest is the major cost of distributed power plant, wants the nation to distributed PV power plant to set up special funds, worked for more than five years of cheap money policies, like building highways, building a real estate loan downpayments to the project. Bank borrowing the tripartite agreements with investors, power grid Corporation, ensure priority to generating income for mortgage payments. In this way, solve the problem of project financing from investors, banks worried about money-back risk were also addressed. Banks lift the worries, investors are provided preferential interest, long-term loans, so that you have more enthusiasm. For families still in its infancy, rooftop PV power generation projects, I think it is more to early financing and interest rate policy. PV Returns improve, we invest in photovoltaic applications is high, PV project will usher in a period of a spurt of cycles.

Second, distributed PV earnings forecasts is another important issue to be solved at present.

Investment earnings uncertainty at present, is seriously affecting the confidence of investors and bank loans in the financial sector initiative for first place. Distributed items scattered, spontaneous self-use tariffs collected from the owners directly by investors, it is easy to cause some problems. And installation company will relocate or go out of business, color-coated steel roof and short service life issues such as Assembly and disassembly of components you want to do then in the power of troubled earnings expectations are formed. To ensure tariff income stability, lifting investors ‘ worries, I suggest that investors can present spontaneous use of electricity and power station settlement, replaced by grid company of unified measurement, uniform charges. National grid to expedite the introduction of photovoltaic power generation “merging of the two power charges” approach, that is, whether power or from electricity and grid are responsible for measuring, charging and billing, grid and grid-connected power, spontaneous closings in conjunction with electricity and electricity subsidies to businesses for investment. In power use and electricity to the national grid on a collection of authoritative, through the grid platform, can make the settlement channel stability and unity, and can also provide investors with reliable forecasts and calculated on the basis of tariff revenue.

Thirdly, the Government support is a major contributing factor for development of distributed PV.

National policy support is a vital underpinning of PV development in recent years. Some provinces and cities in the State-subsidy policy, local additional subsidies have been added, such as Zhejiang increased by 0.1 Yuan per kilowatt. Subsidies to industrial and commercial enterprises in Shanghai reached 0.25 Yuan. I think that, at the initial stage of distributed PV, where appropriate supplementary subsidy, to promote local development in photovoltaic applications, but local government and economic development zone for PV investors service coordination more important, something the Government stepped in, can be used as a multiplier effect. We in Suqian construction project, the municipal government specially convened two project coordinators, invite the national development and Reform Commission, development zones, power supply Bureau and other departments to attend, formed after the meeting minutes, clearly supported policies, to help the sector and specific requirements. Development tracking and solving practical difficulties, ensuring our Suqian the smooth progress of the project. In addition, some local governments and development zone, some policies and approaches in favour of promoting the construction of distributed PV power plant, worth learning and promotion. National MSC economic development zone, issued two years ago provides that admission into new plants must be in accordance with the roof loads for the design and construction of photovoltaic power stations. Meanwhile, countries and relevant departments should formulate relevant policies to support distributed photovoltaic projects, especially new homes using innovations in solar energy systems. In these two years, our photovoltaic tiles design aesthetic and practical, can be directly installed on a new roof, and applied for patents. Then on the one hand, hoping the national energy authority in accordance with the situation further reduction in Northwest China power grid utility scale, synchronization to reduce utility subsidies, subsidy funds be saved using PV in distributed projects, especially household project, and economic lever to compress the ground station problems of overcapacity, increasing investment enthusiasm of distributed PV projects.

I believe that as long as there is a reasonable return on investment, and stable earnings, along with the national policy drivers and support, distributed PV in our country must be able to obtain healthy and rapid development.

Original title: my opinions on development of distributed PV generation

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