China Distributed Solar Power Generation Market Size Provides an In-Depth Insight of Sales, Revenue, Analysis of Growth Factors 2022-2031

The Chinese distributed solar power generation market is expected to register a CAGR of more than 10% during the forecast period,. Factors, such as rising environmental concerns and high cost of grid expansion, are expected to be the major drivers driving the market. Additionally, advancement in technology leading to solar panel manufacturing cost reduction and increase in efficiency has been a significant factor for the growth of China’s distributed solar power generation market. However, recent cuts in subsidies for solar power generation in the country have somewhat hampered the growth of the market.

– The gradual shift from energy generation from conventional sources, such as coal and natural gas, to clean energy, is expected to help grow China distributed solar power generation market.
– Commercial and industrial sectors are increasingly showing interest in distributed solar power generation, due to various economic benefits and a constant source of energy to eliminate downtimes and equipment damage, due to voltage fluctuations in conventional power grids. This has created a huge opportunity for distributed solar power generation market in the region.
– The country accounts for over 30% of global solar energy generation, amounting to 177.5 TWh in 2018. Therefore, China is expected to play a crucial role in the Asia-Pacific distributed solar power generation market as well in the coming years.

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Key Market Trends

Increasing Demand for Clean Electricity


– Increasing demand for clean energy is one of the primary drivers for the distributed solar power generation market in the country. Distributed solar PV capacity in the region is expected to increase by over 47 GW by 2024, while commercial and industrial solar PV capacity is expected to increase by over 166.2 GW by 2024.
– Rooftop solar offers the benefits of modern electricity services to households that had no access to electricity, reducing electricity costs on islands and in other remote locations that are dependent on oil-fired generation, enabling residents and small businesses to generate their own electricity.
– Commercial and industrial systems remain the largest growth segment because they are usually more inexpensive and have a relatively stable load profile during the day that can enable more substantial savings on electricity bills, depending on the policy scheme in place.
– Therefore, the aforementioned factors are expected to drive the market studied during the forecast period.

Cut in Subsidies to Restraint the Market

– China is one of the leading countries in the distributed solar power generation market in 2018 and is expected to continue its dominance in the coming years as well. But, a recent subsidy cut by the government is expected to restraint the market in the coming years.
– The subsidy cut was announced by the Ministry of Finance, and the National Energy Administration on March 31st, 2018, under China’s “531” policy. The subsidy cut was aimed at reducing pressure on transmission systems and reduce subsidy payment backlog estimated at more than 100 billion yuan as of September 2019.
– Due to the subsidy cuts, the country is expected to see a reduction in solar capacity growth compared to what has been witnessed in recent years. This was witnessed as solar capacity growth between 2016-2017 was around 68%, while in 2017-2018 was around 33.8%.
– Therefore, the subsidy cut by the government is expected to be the major restraint of the distributed solar power generation market in the country.

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