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The country has recently introduced a series of policies and measures aimed at boosting the development of its photovoltaic market. The installed capacity target for 2014 was set at 14 GW, reflecting the government's commitment to expanding renewable energy. However, the current policy framework offers a low return on investment, presenting significant challenges for PV developers seeking profitability. The key issue now is how to develop distributed photovoltaics at low electricity prices while still achieving financial viability.
2014 marks a pivotal year for China’s photovoltaic industry, one that will test the resilience of developers in this competitive landscape. The author believes that by focusing on five essential elements—policy, quality, safety, cost, and energy efficiency—developers can overcome these challenges and remain successful. While risks and strategies related to policy implementation and financing have been widely discussed, this article emphasizes practical approaches to managing photovoltaic power generation systems from the perspectives of quality, safety, cost, and performance.
Starting in 2014, the state began implementing different online benchmark prices for large-scale photovoltaic power plants in various regions. The national unified benchmark price for grid-connected electricity was adjusted to RMB 0.9/kWh (Type I area), RMB 0.95/kWh (Type II area), and RMB 1.0/kWh (Type III area). Additionally, the incentive for distributed photovoltaics shifted from initial investment subsidies to electricity subsidies at 0.42 yuan/kWh. This change underscores the need for photovoltaic systems to not only be cost-effective but also high-performing and reliable.
To achieve this goal, five key factors are crucial: 1) leveraging existing national policies to avoid operational risks; 2) strictly controlling component and project quality; 3) ensuring system safety to prevent accidents; 4) reducing costs without compromising quality; and 5) improving the performance ratio (PR) through optimized design.
**Strictly Controlling Photovoltaic System Quality**
The quality of a photovoltaic system depends largely on the quality of its components and the construction process. Compliance with technical standards is essential for evaluating both component and construction quality. Existing standards cover modules, inverters, controllers, batteries, standalone systems, grid-connected systems, large-scale power plants, building-integrated PV, solar trackers, and more. However, even products with third-party certifications may not fully meet all quality requirements. Therefore, it's important to ensure that the entire production process and manufacturer’s management practices are certified.
Photovoltaic modules, inverters, and batteries are long-term assets with lifespans spanning decades. Their reliability cannot be judged solely by appearance or short-term testing. To ensure long-term performance, developers should: 1) require manufacturers to provide authoritative certification reports; 2) consider product quality insurance from reputable insurers; 3) conduct third-party inspections if no insurance is available; and 4) perform re-sampling after one year of operation to monitor failure rates.
In addition to component quality, the design and construction of photovoltaic projects are equally critical. Developers can benefit from involving experienced third parties to review and supervise the entire engineering process, including design, installation, and acceptance. Such services are already available in China and offer significant value in ensuring system quality and performance.
**Ensuring Photovoltaic System Safety**
Safety is a top priority in photovoltaic systems. It includes construction safety, grid stability, electric shock protection, wind resistance, lightning protection, fire prevention, and anti-theft measures. Proper insulation, secure connections, and adherence to safety protocols are essential to prevent arc faults and electrical fires. Although there is no global standard for arc detection, proper installation and regular maintenance can significantly reduce risks.
Wind resistance must be carefully designed based on local weather conditions, balancing factors like tilt angle, annual output, and structural load. In some cases, adjusting the installation angle may be necessary to avoid exceeding the building’s load capacity. These decisions require careful planning and site-specific analysis.
**Reducing Photovoltaic Power Generation Costs**
The cost of a PV system directly affects its revenue. This includes construction, operation, and maintenance costs. The average construction cost is around 9 yuan/Wp, with variations depending on scale and location. Large-scale projects benefit from economies of scale, but distributed systems may face higher equipment costs. However, lower civil construction and grid connection costs can balance the overall investment.
For example, using AC modules or micro-inverters in small-scale residential systems can simplify installation and reduce costs to as low as 7 yuan/Wp. Maintenance costs are generally low due to the static nature of PV systems, with annual maintenance expenses typically less than 2%. Regular cleaning and monitoring can further improve efficiency, especially in areas with high dust accumulation.
**Improving PV System Performance Index**
The performance ratio (PR) is a key metric used internationally to evaluate the efficiency of photovoltaic systems. While early systems had an average PR of 65%, recent improvements have raised it to about 74%. However, few systems exceed 80%. Efforts are underway to develop a “China Efficiency†standard tailored to local conditions.
PR accounts for variations in solar resources and reflects the true performance of a system. For instance, a system in Tibet may have a higher generation time but a lower PR compared to one in Beijing due to temperature and other environmental factors. Temperature correction is essential for accurate comparisons.
California Efficiency (CEC) considers both irradiance and temperature effects, offering a more comprehensive evaluation. Different metrics such as peak efficiency, average efficiency, and weighted efficiency help assess inverter performance under varying conditions.
In conclusion, maintaining high-quality components, ensuring safety, optimizing costs, and improving performance are essential for the long-term success of photovoltaic projects. With proper planning and execution, developers can maximize returns and contribute to the sustainable growth of China’s solar energy sector.