Ms. Shi Mei’s family (Shandong, China) earns about 10,000 USD per year from selling rooftop solar power to the local power grid.
Ms. Shi and her husband had a fairly stable life by growing corn and millet on a small farm. But from 2021, they decided to invest more in solar power. The two signed a contract to install 40 solar panels on the roof to supply electricity to the grid.
Through an app on her phone, Ms. Shi can see how much electricity is generated and how much she is paid per watt. On average, her family earns about 10,000 USD per year. “When the sun appears, you will make money,” she said.
The Shi family is an example of the solar power craze in China. The country has long dominated the world in solar panel production, but rooftop installations are still uncommon. This has changed in the past few years, as the Chinese government has focused on reducing greenhouse gas emissions while developing a green economy.
The country aims to have 20% of electricity produced by 2025 come from renewable energy. They also provide generous support to local governments and businesses. As a result, both solar panel production and installation have skyrocketed.
Most of the rooftop solar power capacity in China was generated in the past two years. Self-producing electricity became more attractive when Beijing supported local governments to install solar power and increased electricity purchase prices.
However, this causes the power grid to sometimes be overloaded. Ms. Shi’s family was lucky to participate early. Some cities in Shandong have now stopped installing rooftop solar power.
Analysts and solar companies all say that China’s prospects are still very bright, if the oversupply situation can be handled. “China has the potential and opportunity for the power industry to peak in emissions by 2025. I hope Shandong will become the leading name in renewable energy in China,” Grace Gao – environmental activist environment and energy at Greenpeace in China said on AP.
According to China’s National Energy Administration, solar panel installation activity here is skyrocketing. In 2023, China’s newly installed solar PV capacity will be about 216 gigawatts. This number is equivalent to more than 50% of the world’s total last year, according to research firm Wood Mackenzie.
Gao said just 1 gigawatt of solar power is enough to power 320,000 Chinese households for a year. Last year, Shandong installed an additional 14 gigawatts of solar panels. This province has the ability to produce more electricity than it consumes at certain times of the day.
In 2014, China announced subsidies for both rooftop solar power and industrial solar power. Shandong – a province with a developed manufacturing industry – became the top candidate.
They are currently the leading province in China in renewable energy. But this also means they face the problem of growing too fast. “Other provinces will also have this problem, if more solar power is generated,” said Peng Peng – Secretary General of China New Energy Financing and Investment Alliance.
Wang Xingyong has a company that specializes in installing solar panels for customers, from villagers to factories. Sales have doubled every year since 2016, he said.
“Initially, we only installed it for one customer, a farmer, for 10,000 -50,000 yuan. Later, we earned projects worth hundreds of thousands or millions of yuan,” he said. speak.
The villagers also did not miss the business opportunity. They buy solar panels to install on their roofs, and get paid when they sell electricity to the grid.
Wang said that at first, the idea was difficult to accept. Few people believe the government will pay them to produce electricity. But gradually, Wang convinced his family and friends to participate. The villagers also followed suit when they saw the results.
However, they do not pay much attention to the government’s emission reduction goals. People like Ms. Shi only see profits from this “even higher than saving at the bank”.
Families can also make money by renting out their roofs to install solar panels, for about 3,000 yuan ($414) per month, said Liu Wenping, an investor in solar companies. . They can also be given air conditioners and refrigerators and receive a small commission from the electricity sold.
Battery manufacturers, electric vehicle manufacturers and power companies in China are racing to create more advanced batteries to store solar energy. The Shandong government is testing a lithium iron phosphate battery to store peak energy and then supply it to the province’s power grid.
Another issue that needs to be resolved is to come up with a way to price electricity in the spot market. Currently, China still uses electricity prices set by the government, calculated based on in-depth research. Analysts say that without price flexibility, China will have difficulty convincing customers to switch to using electricity during off-peak hours.
The Chinese government is also planning to improve the power grid. In February, the National Development and Reform Commission (NDRC) – responsible for monitoring and implementing economic policies – called on provinces to focus on increasing the flexibility of the power grid. They want to retrofit coal power plants, to quickly flex power supplies.
“All countries in the world that use renewable energy have problems like this. They are looking for smart solutions, or trying to integrate AI to have the most efficient and productive power grid. China will also face that situation,” said David Fishman – Senior Director at consulting firm Lantau Group.
Currently, there is no sign that the solar power craze in China will stop. Businesses are flocking to southern provinces, not far from Shandong.
And in Shandong, Wang is optimistic about his career prospects. Although new projects with villagers are slowing down, Wang still has corporate clients. As the electric vehicle industry in China is booming, China will need to build charging stations that incorporate solar batteries.
“I believe the future will become brighter and brighter,” he said.