"From the Bird's Nest and Water Cube to the upcoming Beijing Winter Olympics, from new-energy vehicles to Hong Kong Disneyland, the photovoltaic power generation industry is increasingly demonstrating its greater value in societal development." ” Wang Bohua, Vice Chairman and Secretary-General of the China Photovoltaic Industry Association, began his speech at the "Seminar on the Review of PV Industry Development in the First Half of 2019 and Outlook for the Second Half" with these words.

For China's photovoltaic industry, which has just emerged from a period of downturn, the series of grid-parity policies introduced in the first half of 2019 have made these six crucial months a pivotal milestone in the sector's development journey.

1. Zibo Zhangdian Launches a New Energy-Saving Model Through Contract Energy Management

On August 2, the sun was blazing overhead. On the 3,000-square-meter rooftop of the Zhangdian District Government Service Center, rows of neatly arranged photovoltaic panels were eagerly soaking up the scorching sunlight—providing clean, renewable energy to power the government office building.

The Zhangdian Government Service Center photovoltaic power project is the district's first rooftop PV project for a government office building. Since its commissioning in May 2018, it has operated under a "self-generation and self-consumption, with surplus power fed into the grid" model. With an installed capacity of 300 kilowatts, the system generates 360,000 kilowatt-hours of electricity annually—enough to meet about one-tenth of the center's typical annual power demand.

Photovoltaic power generation is a microcosm of Zhangdian District's exploration of the contract energy management model. Contract energy management is a new, market-oriented energy-saving mechanism—essentially an energy-saving investment approach where reduced energy costs cover the entire expense of the energy-efficiency project. As of now, Zhangdian District has a total of 8 public institutions that have completed photovoltaic power generation projects, with a combined installed capacity of 1,100 kilowatts. Under conditions of ample sunlight, these systems can generate 1.3 million kilowatt-hours of electricity annually, helping to save more than 350,000 yuan in electricity costs each year.

2. The People's Bank of China has also installed photovoltaic systems.

On July 24, the construction of the 44kW distributed photovoltaic power generation system at the Aba Branch Office Building of the People's Bank was successfully completed and connected to the grid, with an estimated annual output of 66,100 kWh. After a week of trial operation, the system has collectively generated 1,633 kWh of photovoltaic power, accounting for 23.14% of the office area's total electricity consumption. This has resulted in a reduction of 1.59 tons of CO₂ emissions and lowered energy costs by 1,066.65 yuan.

As the first financial institution in Aba Prefecture to install a distributed photovoltaic power generation system, the Aba Branch of the People's Bank of China invited a professional organization to conduct a specialized energy audit of the branch office building and assess the potential for green renovations on existing structures, ensuring a scientifically sound feasibility study. During project implementation, the branch worked closely with the Prefecture Administration Bureau of Government Affairs, the Development and Reform Commission, and the local power company, staying attuned to policy requirements and successfully navigating the project approval process. Moreover, the photovoltaic installation was seamlessly integrated into the broader office building renovation plan—coordinated both in design and execution—to address critical construction challenges. This project not only capitalizes on the abundant solar resources available in the plateau region but also sets a valuable benchmark for other public institutions in the area, demonstrating how renewable energy technologies can be effectively leveraged to reduce energy consumption.

3. Zhejiang Transportation Group Dongyong Management Office Achieves Full Rooftop Photovoltaic Coverage

"Close the switch!" On August 5, following system operator Xu Gong's command, Zhejiang Provincial Transportation Group’s Dongyong Management Office officially kicked off the solar photovoltaic power generation phase after the project successfully passed grid-connection acceptance by Yongkang City’s State Grid Corporation.

The Dongyong Management Office's photovoltaic power generation project, designated as a key new energy application project for Zhejiang Transportation Group in 2019, has consistently been a top priority receiving close attention from both the provincial transportation group and the Jinliwen-level companies. Since construction began in mid-June, the project has undergone nearly 40 days of intensive effort by Zhejiang Jiatou New Energy Investment Co., Ltd. Finally, on August 5, 2019, the project was successfully connected to the grid, with all operational indicators functioning normally.

It is reported that the Dongyong Management Office's photovoltaic power generation project primarily utilizes photovoltaic modules installed on the roofs of its administrative building and ancillary structures to generate electricity. The project boasts a capacity of 182.46 kWp and operates under a "self-generation for self-use, with surplus power fed into the grid" model. According to calculations, based on the 25-year lifespan of the photovoltaic system, the project is expected to produce an average of 168,000 kWh of electricity annually—totaling 4.2 million kWh over its lifetime. This initiative will help save 51.2 tons of standard coal annually, reducing carbon dioxide emissions by 132 tons while also cutting sulfur oxide and nitrogen oxide emissions by 1.32 tons each year. As a result, the project not only delivers significant economic and social benefits but also provides robust support for improving the local environment. Ultimately, it plays a vital role in helping Zhejiang Transportation Group advance its vision of becoming a "Green Transportation Enterprise."

At the beginning of 2019, the National Development and Reform Commission and the National Energy Administration jointly issued the "Notice on Actively Promoting Subsidy-Free, Competitive On-grid Electricity Prices for Wind and Photovoltaic Power Generation," clearly stating that, Officially launch pilot projects for wind and photovoltaic power generation to achieve grid parity and competitive pricing, requiring provincial-level grid companies to assume the responsibility of purchasing electricity from these projects by signing long-term, fixed-price power purchase agreements with terms of no less than 20 years.

In April, the National Energy Administration issued two draft consultation letters: "Work Plan on Promoting the Construction of Wind and Photovoltaic Power Projects with Competitive Bidding but No Subsidies" and "Notice on Relevant Requirements for the Management of Wind and Photovoltaic Power Generation Projects in 2019." "Prioritizing the development of grid-parity projects" is set as the primary condition for expanding industry scale.

In May, the National Energy Administration officially issued the "Notice on Matters Related to the Construction of Wind Power and Photovoltaic Power Projects in 2019," clearly stating that, In 2019, national subsidy programs for conventional photovoltaic power generation will fully adopt market-based allocation, giving the market a decisive role in the distribution of photovoltaic power generation resources.

"2019, and even for some time to come, will be China's initial 'subsidy-free' phase for photovoltaic power projects." ” As Shi Jingli, a researcher at the Energy Research Institute of the National Development and Reform Commission, pointed out, a series of policies introduced this year have created an integrated feedback loop for the photovoltaic industry—covering areas such as electricity trading, curtailment management, and supportive measures. Meanwhile, the ongoing reduction in non-technical costs like VAT rates and land expenses will further ease the transition, enabling PV projects to smoothly enter the era of grid parity.

Meanwhile, Chinese photovoltaic companies are gearing up, building even more momentum in preparation for the increasingly imminent arrival of the grid-parity era. Yang Liyou, General Manager of Jinneng Company, clearly stated in an interview that, to swiftly achieve grid parity for China's photovoltaic power projects, PV enterprises will continue to deepen their focus on technological innovation—developing cutting-edge technologies and exploring new approaches. They’ll work tirelessly to enhance product efficiency, quality, and reliability, ensuring that PV offerings remain both high-performing and cost-effective. Moreover, the industry must strive toward high-quality, sustainable growth as a whole.

On July 25, a relevant official from the New Energy and Renewable Energy Department of the National Energy Administration stated at the agency's regular press conference that, 2019 marked the first year of implementing the new competitive bidding mechanism for photovoltaic subsidies. The introduction of this initiative has effectively accelerated the gradual reduction of PV subsidy levels. Moving forward, we will further refine the operational framework to continue fostering the healthy, orderly, and high-quality development of the photovoltaic industry.