Industrial and commercial photovoltaic systems face urgent challenges! A region plans to designate the time from 1:00 PM to 2:00 PM as a low tariff period, reducing electricity prices by 60%.
According to recent information from Polar Star Distributed Photovoltaics, on May 16, the Guizhou Development and Reform Commission issued an announcement seeking public opinions on the optimization and improvement of peak and valley time-of-use electricity pricing. The proposed adjustment includes changes to the peak, valley, and flat time periods. The document indicates that from March to November, the time slot from 1:00 PM to 2:00 PM will be classified as a valley electricity period based on factors such as power system load, renewable energy consumption, and seasonal variations.
Regarding the specific adjustments, the floating electricity price for industrial and commercial users will be based on the grid-connected electricity price (transaction price or agency purchase price). The floating pricing will not include transmission and distribution prices, system operation costs, government funds and surcharges, or line loss costs during the grid-connected phase. The peak pricing will increase by 60% from the flat price, while the valley pricing will decrease by 60% from the flat price.
Many photovoltaic investors express concern that although these policies aim to encourage users to increase electricity consumption during the afternoon valley period to alleviate the pressure on renewable energy absorption, they simultaneously pose a threat to general industrial and commercial photovoltaics. The primary impact is that the peak generation time for industrial and commercial photovoltaics typically occurs between 10:00 AM and 2:00 PM, which coincides with the newly defined low valley price period. This adjustment effectively shifts the peak photovoltaic generation period into a time when electricity prices are significantly reduced, leading to a sharp decline in photovoltaic electricity prices. For instance, in Shandong, the deep valley pricing has dropped by 90%, resulting in nearly a halving of photovoltaic revenue.
The original document regarding the public consultation on the optimization and improvement of peak and valley time-of-use electricity pricing outlines that in order to fully utilize the signaling effect of peak and valley pricing, better guide users in adjusting their electricity consumption, improve the balance of power supply and demand, and promote the development of renewable energy, the provincial development and reform commission has drafted a notification for public consultation. The feedback period is set from May 16 to May 29, 2025. The public can provide feedback through the following methods:
- Visit the Guizhou Provincial Development and Reform Commission website and enter the “Feedback” section to submit suggestions.
- Send comments via email to jiageguanlichu@163.com.
Thank you for your support and participation!
Guizhou Provincial Development and Reform Commission
May 16, 2025
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/emergency-for-industrial-and-commercial-solar-new-off-peak-pricing-plan-to-cut-rates-by-60-from-1-pm-to-2-pm/
