Dynamic feed-in tariff pricing model of distributed photovoltaic generation in China

Abstract

Because China’s long-term constant photovoltaic (PV) feed-in tariff policy has not been able to adapt to the decline in the cost of PV equipment, and too broad regional pricing will hinder the development of distributed photovoltaic generation (DPVG) to some extent. Therefore, this paper will re-evaluate China’s solar resource endowments into five regions, and based on the accounting cost method, combine the learning curve of PV equipment to accurately measure the dynamic unit generation cost of distributed PV. In addition, considering the reasonable returns to investors and tax factors, this study has obtained a dynamic feed-in tariff model for DPVG. A case study based on the model shows that the results of feed-in tariff is reasonable and effective, and the government should adjust the feed-in tariff more frequently according to the feed-in tariff pricing model in this study.