SolarCity business model could flourish in China: Deutsche Bank

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

A SolarCity-style business model could flourish in China if policy changes allow it, according to Deutsche Bank analyst Vishal Shah.

The model could help the country achieve its ambitions for rooftop solar, which look increasingly likely to prove elusive for now.

A number of policy changes aimed to encourage local governments to incentivise distributed solar in agricultural, commercial and transport facilities have now been released.

“While DG [distributed generation] deployments in 2014 will likely pick up in the fourth quarter and notably outperform the ~800MW of DG installed in China in 2013, the policy was released 1-2 months later than expected,” said Shah in a research note adding that DG targets would now “be difficult to achieve”.

China had originally set itself a quota of 14GW of new capacity for 2014, with a split of 6GW of utility and 8GW of distributed generation (DG). Last month Wu Xinxiong, head of the National Energy Administration (NEA) said he hoped to see 13GW installed with the majority coming from DG.

The first half of the year, traditionally the slower half, ended with confusion over how much DG had been installed and what chance there was of anything close to 8GW being installed. Some analysts predicted that around 1GW of smaller rooftop projects would be connected.

Despite that, Shah expects the groundwork being laid now to bear fruit eventually.

“…This will support a favourable setup into 2015, particularly as further details around financing arrangements (leasing, loan guarantees, etc) are fleshed out in subsequent policy announcements at the federal and local level,” he continued.

“Depending on the policy details, we see potential for business models similar to SolarCity in China driving further upside over the next few years, and expect companies like Trina Solar with a manoeuvrable balance sheet to benefit,” he added.

Hear Vishal Shah’s views on the future of solar finance at Next Generation Solar Finance in New York on 29 September at the Andaz Hotel on Wall Street. Vishal joins a selection of 30 speakers from Solar City, JP Morgan, State Street Global Advisors, BlackRock, Anthony Fotopoulos, Chief Executive Officer of Conergy Americas, and many more.

See the full list here.

19 October 2021
This year’s EV World Congress will hold a special role, not only as the first live EverythingEV event in over a year – a chance to renew your connections and re-engage with the EV sector face to face – but also as a chance to share insight and inspiration as world starts to look towards move on post COVID towards hitting ambitious decarbonisation goals in 2030 and beyond. As ever, we will be bringing world leading organisations, cities, and technology providers to the UK to inspire EV innovators, and delve into the challenges facing the sector as the UK looks to revolutionise road transport.
20 October 2021
Utility-scale solar is evolving, shaped by higher power modules and demand for increasingly lower levelised cost of electricity (LCOE). Those trends are also changing project requirements elsewhere, with inverters capable of delivering high power density and power capacity in strong demand. In this webinar, FIMER will detail how its innovative high-power, multi-MPPT string inverter and modular conversion solution can both meet those demands and transform the utility-scale solar sector for the better.
20 October 2021
The race is on but we need to sprint… With global climate talks fast approaching and time running out to prevent the most disastrous impacts of climate change, now is the time to act. The Summit will explore the opportunities that emerge from taking action on climate change and provide a clear pathway forward for governments, citizens and companies. Taking place just 10 days before the G20 meeting in Rome, on 30-31 of October, and in the lead up to the critical COP26 meeting in Glasgow from 31 October–12 November, this event will be instrumental in influencing ambitious global action.
10 November 2021
The solar tracker market continues to mature at breakneck speed, with designs and component selections becoming ever-more complex in the pursuit of better project economics. But a more simplistic design could deliver a triple benefit of lower Capex, EPC and Opex costs. This webinar will set out the ideal single axis tracker design for utility-scale solar farms. The design leapfrogs from decades of experience, with a comprehensive understanding and attention to the three cost structures of Capex, EPC and Opx. Sun and Steel Solar has prototyped a single axis tracker designed to deliver up to US$0.03/W in real savings compared to existing single axis trackers on the market. That’s US$30 million for every gigawatt deployed.
15 November 2021
The 10th edition of the famous Metallization and Interconnection Workshop, MIW2021, will take place in the Thor Central venue in Genk, Belgium, on Monday, November 15, and Tuesday, November 16, 2021 as a face-to-face meeting. We are longing for direct exchange of knowledge and ideas after a long time. Hopefully you can be part of it! But of course, the organizors will keep an eye on the evolution of the Covid pandemic. It will be assess carefully, whether the workshop can be held without major risks or excessive restrictions. We are looking forward to exciting talks, discussions and meetings and to welcoming you in Genk!
23 November 2021
The solar, storage and EV industries in the UK are going from strength to strength. There is no better place for the community to meet, share ideas and do business than Solar & Storage Live from 23-25 November at the NEC.There’s something for everyone; more than 150 exhibitors, a high-level conference, a start up and innovation zone, a poster zone, strategic partners to network with and much more. 

Read Next

October 19, 2021
Shortlisted bids in Saudi Arabia’s latest solar tender have jumped significantly on the lowest price recorded in the country’s previous renewables programme, reflecting the hikes in PV equipment costs in recent months.
October 19, 2021
The White House has said renewables are still key to its budget reconciliation bill despite rumours of the investment tax credit (ITC) being modified as opposition to the bill by senators Manchin and Sinema continue
October 19, 2021
Europe's energy crisis can be a boon for renewables deployment on the continent by bolstering business cases, but familiar foes such as grid constraints will still need to be hurdled in the coming years.
October 19, 2021
Solar tracker manufacturer Soltec has signed a framework agreement with renewables developer Acciona Energia to supply trackers over a three-year period.
October 18, 2021
Heterojunction cell and module manufacturer Meyer Burger has appointed a new CFO just one year after incumbent Jürgen Schiffer took on the role.
October 18, 2021
Italian grid operator Terna has acquired Italian solar O&M provider LT in a €24 million (US$27.8 million) transaction.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 19, 2021
Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021