Distributed solar PV grid-connected power generation is a photovoltaic power facility, which is constructed nearby where the users are located and most of the power generated by the system is consumed by users, only the surplus power can be sold to public grid, moreover, it can be adjusted in the power distribution network. Distributed photovoltaic grid-connected power system is connected to utility grid in the voltage class of 10KV and below and the total construction capacity of individual system does not exceed 6MW.

Distributed photovoltaic grid-connected power system can be used to maximum utilize local solar resources, replace and reduce the consumption of fossil energy with the principles of conforming to local conditions, clean &efficient, decentralized layout. It can be installed in the areas with sunlight, such as factory rooftop, commercial building, agricultual facilities, municipal public buildings and civil buildings e.t.c

1. Policy guarantee

Electricity generated by distributed PV power systems is subsidized by central government with the standard of RMB0.42/Kwh. Besides this , it is also subsidized by local governments. The period of subsidy  is 20 years, the users are encouraged to construct the distributed pv power system with the principle of "Self-consumption, the surplus sold to grid and adjusted by grid".

Read more: Distributed PV Grid Investment Income Analysis

On April, 9th, 2014, China's National Energy Bureau released the notice on Electric power business licence management, which stipulates that any enterprises, units or individuals who engaged in the solar PV project with the capacity 6MW below do not require to get the power generation license approval. 

Read more: Distributed PV Grid Policy
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