The emergence of this situation is largely due to the policy constraints of the photovoltaic industry. In China, the application of photovoltaic power generation is mainly concentrated in rural electrification and off-grid PV products. Since the power sector has not officially accepted photovoltaic power generation, the grid-connected PV market has not really started. As of 2006, the cumulative installed capacity of photovoltaic power generation was only 80,000 kilowatts.
Wu Xiao's deputy general manager Xie Xiaonan's view is representative in the photovoltaic industry: due to policy issues, the domestic market can not be started soon, we are very anxious.
At this stage, the most direct factor hindering PV promotion is cost. In the past 30 years, although the cost of photovoltaic power generation has dropped from US$5 to US$0.5 per unit, it is still much higher than conventional electricity. At present, a "solar power plant" that can generate 3,000 degrees of electricity per year is installed on the roof of a villa, which costs between 150,000 and 200,000 yuan.
Due to the high cost of photovoltaic power generation, it can only rely on government support. Some countries adopt policies such as purchasing online and financial subsidies to promote the development of the photovoltaic industry. Germany enacted the Renewable Energy Law in 2000. One of its main features is the "fixed on-grid tariff" policy. Grid companies must fully purchase the grid-connected electricity from photovoltaic power generation; Japan's policy tilt is reflected in subsidies to users.
In China, the Renewable Energy Law was implemented on January 1, 2006. The law has specific provisions for supporting renewable energy such as photovoltaic power generation, but it lacks implementation rules and supporting policies for a long time. At present, the industry is struggling to wait for support policies such as "acquisition of the Internet."
"Acquisition of the Internet" means that the grid company purchases according to the cost of photovoltaic power generation plus reasonable profits, and the extra cost is shared among the national consumers. Experts revealed that China has begun to collect a renewable energy surcharge of 1 cent per kilowatt-hour, and is preparing to launch a rooftop photovoltaic power generation plan in cities such as Shanghai. In addition, the state will require grid companies to acquire photovoltaic power in some large-scale projects with open tenders.
Shi Dinghua, chairman of the China Renewable Energy Society, believes that the country's policy support should be increased. In the long run, the lack of domestic market will limit the development of China's photovoltaic industry. To achieve large-scale production and improve the competitiveness of the photovoltaic industry, it is necessary to establish and stimulate the domestic consumer market. The domestic PV industry is ready to invest in technology research and development, but there must be a stable policy to ensure that these investments can be rewarded. Among various renewable energy sources, wind energy is unstable, biomass resources are limited, and uranium resources required for nuclear energy may be used up in the future, and solar energy is inexhaustible. If the price of solar energy falls to the same level as fossil energy, the opportunity will be missed.
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