Distributed energy the future of solar in China

Facebook
Twitter
LinkedIn
Reddit
Email
China is predicted to install more than 48GW of residential and C&I solar in 2022. Image: Total Solar Distributed Generation.

Distributed generation is the future of solar PV in China, with 48GW expected to be deployed next year in the country, according to Frank Haugwitz, director of Europe Asia Clean Energy Advisory Company.

The comments were made during a ROTH Capital webinar on upstream manufacturing, technology and the industry’s outlook in China.

“Points of generation and consumption will drive structural changes and will take pressure away from the stretched grid system,” he said. Indeed, in the US, a recent report said the country needs to deploy a minimum of 103GW of distributed solar – which includes residential and commercial and industrial (C&I) applications – to achieve its climate goals.

While China is predicted to deploy 24GW of distributed generation in 2021, Haugwitz expects this to double next year to 48GW. Broken down, residential solar will grow from about 16GW to 21GW, said Haugwitz, with the largest growth coming from the C&I sector, which will more than triple in the next year from around 8GW in 2021 to 27GW next year.

One factor driving this growth is the high cost of land in China’s eastern regions. “Land is becoming more expensive, so rooftops are becoming the market preference,” said Haugwitz.

Another is subsidies. While the current understanding is that state support for rooftop solar – currently at RMB500 million per year – is soon to be withdrawn, Haugwitz said it was a possibility that an extension could occur. Moreover, certain city regions and urban areas are offering municipal support to encourage the widespread deployment of distributed energy systems.

City guidelines in China have encouraged rooftop solar as a means to green cities, with city level subsidy schemes serving to boost demand. Haugwitz pointed to Shanghai, which aims to peak its carbon emissions in 2025, five years earlier than China’s national target, and has seen an explosion of rooftop solar in recent years.

Read Next

PV Tech Premium
September 30, 2022
As trade bodies call for Ukraine to reach 50% renewables in its power mix by 2030, it will need to install 17GW of solar PV.
September 22, 2022
Tech major Amazon has expanded its renewables portfolio globally with 71 new projects with a total capacity of 2.7GW.
September 21, 2022
Under the REPowerEU scenario to install 750GWdc of solar across the European Union by 2030, the bloc will require 1 million solar workers, double the numbers from 2021.
September 16, 2022
Residential solar installer SunPower has made minor investments in solar dealers Renova Energy and EmPower Solar.
September 14, 2022
Despite “breakthrough” renewables growth across Southeast and Eastern Europe, the Caucasus and Central Asia in recent years, more needs to be done to boost deployment and reduce the region’s reliance on Russian energy imports.
September 14, 2022
Private equity giant BlackRock Real Assets has acquired New Zealand solar and energy storage provider solarZero.

Subscribe to Newsletter

Upcoming Events

On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)
Solar Media Events
November 29, 2022
Malaga, Spain