Are residential solar photovoltaic systems a good investment in China?

Residential solar photovoltaic (PV) installations have boomed in China over recent years. However, knowledge about the economic performance of residential PV investments is still limited. Therefore, this study attempts to make a complete economic assessment of residential PV systems at the county-level.

Why is China a leader in solar energy production & installation?

Toward this end, the country makes all efforts to develop renewables including solar photovoltaic (PV) generation. As a result, China has become a leader in the production and installation of PV equipment in the world since 2013 (REN21, 2014, 2020).

Why are residential PV systems increasing in China?

As the initial cost of PV investments keeps declining rapidly, however, residential PV installations began to speed up gradually. The newly installed capacity of residential PV systems in China in 2019 is 4.2 GW p, which is just following the annual addition to solar PV capacity of the U.S., India, Japan, Vietnam, or Spain (REN21, 2020).

How many solar panels will China install in 2021?

In the first seven-months of 2021, China installed 7.66 GW of residential solar, with close to 1.8 GW installed in July alone. The market is taking advantage of the relatively generous and fixed budget of CNY 0.5 billion ($77.5 million) and a subsidy of CNY 0.03/kWh.

Where are PV systems located in China?

They are mainly located in North China, northeast China, and South China. Table 6. IRR and PBP projected for residential PV systems without subsidies and with residential electricity prices at the first tier in China in 2021 (Unit: area). All the areas have a PBP not longer than 24 years.

Will residential solar be included in the grid-parity umbrella in China?

However, there is increasing uncertainty in the market about the future of residential solar in China once the current program is phased out next year, which means that the residential segment will also be included in the grid-parity umbrella, as is the current status of commercial and utility installations.