As pointed out by a member of the Chinese People's Political Consultative Conference, the "blood-creating" capability of photovoltaic poverty alleviation can effectively prevent the recurrence of poverty after脱贫 (eradication of poverty), ensuring that impoverished households have a sustainable source of income while also addressing long-term economic development challenges. This approach represents a new pathway to effectively integrate industry with poverty reduction efforts. Fu is a great tool for poverty alleviation.

Wu Junjie | August 19, 2016, 10:54:00 AM | Source: Solar Power Generation Magazine   

　Source: Solar Power Generation Magazine, August 2016 issue
　　Author: Wu Junjie

　　Recently, industry discussions about poverty alleviation through photovoltaics seem to have surged all at once. Many people are concerned that photovoltaic-based poverty relief could easily end up becoming yet another "Golden Sun Demonstration Project."
　　This concern stems primarily from some recently less-than-optimistic reports coming out of the photovoltaic poverty-alleviation market.
　　For instance, reports indicate that some regions are increasingly using substandard components in poverty alleviation projects. Meanwhile, others are reportedly raking in huge profits by inflating system costs—system prices as low as 10 yuan/watt or even 12 yuan/watt are not uncommon. There’s also the practice of falsifying power-generation data; reportedly, one company even claimed its facilities in Hebei could achieve annual generation hours as high as 1,800—a claim that seems highly exaggerated, to say the least.
　　These irregularities seem to have provided real-world evidence supporting certain viewpoints that dismiss photovoltaic poverty alleviation efforts.
　　Some argue that photovoltaic power generation still relies on government subsidies to survive—it’s essentially "poor" itself—and yet now it’s expected to help lift others out of poverty, which simply doesn’t make sense logically.
　　So, for now, let’s start by crunching the numbers for photovoltaic-based poverty alleviation—and see whether solar power really is a good fit for poverty relief, and whether it actually makes financial sense.
　　Once this accounting is clarified, it could prove beneficial—whether it’s for gaining a more comprehensive understanding of the significance of photovoltaic poverty alleviation, guiding the orderly development of this market, or even assisting companies struggling to make tough decisions in the PV poverty-alleviation sector. 。

First, let’s take a look at the main challenges currently facing poverty alleviation efforts.
　　Due to imbalances in resources and development—particularly in the resource-scarce and underdeveloped western regions with weaker capacities for sustainable growth—the key challenge in poverty alleviation has always been how to sustainably generate income, accumulate profits for reinvestment in production, and ultimately foster a positive cycle of development that empowers impoverished households to escape poverty and achieve prosperity once and for all.
　　In other words, the primary indicator for assessing the effectiveness of poverty alleviation efforts is whether it can deliver sustained, stable income to impoverished households.
　　This, in fact, is precisely the standout feature of photovoltaic power generation. With just a one-time investment, you gain access to stable, continuous energy production—and what’s more, this output can easily be converted into cash flow with comparable characteristics. These widely recognized financial advantages ensure that photovoltaic power generation offers clear, steady, and predictable future returns, which undoubtedly holds immense value for the successful implementation of targeted poverty alleviation strategies.
　　Secondly, these areas—mostly located in the western, impoverished regions—are also blessed with favorable sunlight conditions and abundant reserves of barren mountains, wasteland, or infertile land—resources that are precisely essential for developing photovoltaic power generation.
　　Therefore, it’s fair to say that the combination of photovoltaics and poverty alleviation is a natural fit—some might even call it a match made in heaven.
　　As pointed out by a member of the Chinese People's Political Consultative Conference, the "blood-creating" capability of photovoltaic poverty alleviation can effectively prevent the recurrence of poverty after脱贫 (eradication of poverty), ensuring that impoverished households have a sustainable source of income while also addressing long-term economic development challenges. This approach represents a new pathway to effectively integrate industry with poverty reduction efforts.

　　Of course, the emergence of this new market segment—photovoltaic poverty alleviation—brings numerous benefits to China’s domestic PV industry itself, helping to absorb excess production capacity to some extent and even potentially providing crucial support at a time of need.
　　As conflicts of interest stemming from the growing mismatch between supply and demand become increasingly apparent, the rapid contraction of the large-scale ground-mounted solar power market in western China is now inevitable. Meanwhile, markets like "leader bases"—which are increasingly dominated by a handful of major companies—and the highly uncertain distributed energy sector clearly struggle to absorb the rapidly expanding upstream production capacity. As a result, severe industry turbulence may already be unavoidable.
　　Although the overall scale of the poverty-alleviation market is relatively small compared to the ground-mounted power station market, its concentrated surge in demand can provide significant short-term support for digesting upstream production capacity—and its role in mitigating sharp industry volatility should not be underestimated.
　　Therefore, whether for the photovoltaic industry or the nation's poverty alleviation strategy, leveraging PV technology to combat poverty holds immense value and significance.
　　This actually also answers the question of why photovoltaic power generation, despite being "for the poor," is still being used for poverty alleviation efforts.

　　From a politician's perspective, it’s clear that promoting photovoltaic projects for poverty alleviation isn’t about absorbing excess PV production capacity—but rather because PV happens to be an excellent tool for tackling poverty. After all, compared to advancing clean energy development, poverty reduction remains the more pressing and central task facing society today.
　　The five-year campaign for targeted poverty alleviation, launched by this administration, urgently requires a more manageable approach to achieve its ambitious goals. Originally designed as a single-purpose tool—clean energy subsidy funds—they now serve dual functions: not only fostering clean energy development but also addressing the critical challenge of poverty reduction. What’s not to love about such a win-win solution?
　　The current issues emerging in the photovoltaic poverty alleviation market stem solely from shortcomings in market management. As long as we promptly—indeed, absolutely must—establish clear market safeguards, it’s still not too late to correct course. However, we must avoid the mistake of throwing out the baby with the bathwater.
　　For companies in the industry, blindly avoiding risks out of fear—or prioritizing profit at all costs, even at the expense of ethical boundaries—is clearly not the best approach. Instead, it’s far wiser to diligently study the unique characteristics and underlying principles of this market, and focus on developing high-quality projects that will stand the test of time.
　　In this way, it benefits both others and oneself.
　　Photovoltaic poverty alleviation is a significant initiative that benefits all parties involved—and it still requires the continued dedication and collaboration of colleagues in the PV industry. Let’s move forward together, cherishing every step along the way. (Wu Junjie)