Grid shortages fuel China's small-scale solar boom

27, Mar. 2025

Small-scale, "distributed" PV has become a significant part of the world's biggest solar market but it is now butting up against the same grid constraints that have frustrated utility-scale PV in China and other parts of the world.

 

From PVMAGAZINE

 

Small-scale, "distributed" PV has become a significant part of the world's biggest solar market but it is now butting up against the same grid constraints that have frustrated utility-scale PV in China and other parts of the world.

Distributed-generation (DG) solar arrays in China have evolved to rival utility-scale sites. National Energy Administration (NEA) data revealed around 96.3 GW of the 216.3 GW of solar generation capacity added in China in 2023 was commercial and industrial (C&I), residential, and other small- and medium-scale systems. The 23.8 GW of distributed systems installed in the first quarter of 2024 outpaced the 21.9 GW of ground-mounted project capacity.

Where utility-scale solar led, C&I systems followed, with residential PV gaining in recent years. Installations were helped by initiatives such as the Golden Sun Project and the Top-Runner Program that were introduced in 2012 after trade disputes with the United States and Europe hit Chinese solar exporters.

In 2014, China’s National Development and Reform Commission (NDRC) introduced distributed PV regulation and subsidies, attracting investors. Small solar even survived the shock of the “5/31” subsidy cuts introduced by Beijing at the end of May 2018, leveraging its inherent advantages over utility-scale solar projects.