In the cold of winter, where have China's photovoltaic (PV) products, battered by trade barriers from Europe and the United States, found a new path? Recent policy developments suggest that government departments are realizing that only by developing the domestic market can China’s struggling PV industry find new life.
Since May this year, the Ministry of Industry and Information Technology has been conducting extensive investigations into the use of solar energy in rural areas across the country. Recently, it announced plans to promote “photovoltaics going to the countryside.†On December 19, during a State Council executive meeting on PV issues, for the first time, the government proposed encouraging households to install and use photovoltaic power systems, signaling that the door is opening for distributed PV applications in rural regions.
Wen Jianhua, COO of Hunan Gongchuang Photovoltaic Technology Co., Ltd., told the *China Science Journal* that this policy was long-awaited and essential for making solar energy truly beneficial to the public.
Currently, rural PV applications in China are almost a “blank spot.†Capturing this huge market potential is crucial for the future of China’s PV industry.
Li Junhua, a researcher at the China Business Intelligence Network, told *People’s Republic of China Journalists* that China already has the resources, technology, production capacity, and industrial foundation to accelerate the development of the PV market. The rural market, with its electricity needs and abundant land, could become a key growth driver for domestic PV demand.
Imagine using the slope of an agricultural greenhouse to install solar panels, creating a transparent photovoltaic glass greenhouse that generates electricity while growing vegetables. This innovative approach not only produces power but also enhances plant photosynthesis through the use of photovoltaic cells.
It is reported that the total area of standardized agricultural sheds in China has reached 50 million mu. If fully integrated with PV systems, this could create a market worth 250 billion yuan.
Wen Jianhua emphasized that greenhouses are just one example of rural PV applications. With vast rural areas and many places lacking grid access, PV can supplement the grid, such as powering insecticidal lamps or irrigation systems.
On the consumer side, PV integration in buildings is becoming more common. Wen noted that in some wealthy rural areas, household electricity consumption is even higher than in cities. He shared an example of a farmer with a large house who uses over 1,000 kWh per month — a perfect candidate for a PV-integrated home.
However, the road to rural PV is not without challenges. One major issue is grid connection. Surplus electricity generated by farmers may need to be fed back into the grid, but technical and regulatory hurdles remain.
To address this, the State Grid Corporation issued a notice in late October, streamlining grid access for small-scale PV systems. It requires grid companies to cover costs for grid upgrades and mandates smart meters for two-way electricity flow.
Since the notice, over 500 PV-related consultations were received in November, with 123 applications filed, totaling 176.4 MW. In Qingdao, the first residential PV system was successfully connected to the grid, marking a milestone.
While rural grid infrastructure lags behind urban areas, progress in rural construction and urbanization offers hope. Wen believes the ideal model is decentralized, off-grid, or near-grid systems, gradually expanding to grid-connected homes and villages.
Despite the potential, cost remains a barrier. However, a survey by Hunan Joint Solar showed that even without subsidies, rural households could recover their investment within six to eight years, with returns of 12% to 15%.
For those unable to invest upfront, energy management companies can step in, allowing users to benefit from grid-connected power while using only part of the electricity they generate.
Li Junhua suggested early-stage government support, either through direct investment or subsidies to companies. But he warned that widespread implementation will take time.
Another challenge is the subsidy mechanism. With the grid buying PV electricity at 1 yuan per kWh, while selling it at around 0.5–0.6 yuan, the financial gap must be addressed.
The latest news is that the State Council confirmed a subsidy standard of 0.4–0.6 yuan per kWh, which is seen as attractive for investors.
Wen concluded that rural PV should start in areas with good sunlight and easy-to-modify buildings, with the government setting clear policies and detailed implementation steps.
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