On May 9, 2025, a seminar focusing on the development of the distributed solar and energy storage market under the new policies took place successfully in Shanghai. This event was organized by the Green Energy Industry Development Promotion Association (GEA) in collaboration with the China Distributed Solar Energy Storage Brand Alliance.
The background for this seminar stems from recent policy updates. On January 17, 2025, the National Energy Administration released a new version of the “Management Measures for the Development and Construction of Distributed Photovoltaic Power Generation” (Guo Neng Fa Xin Neng Gui [2025] No. 7). This document made new adjustments to the grid connection rules and project compliance for distributed photovoltaic projects. It encouraged operators to supply green electricity directly but stipulated that they would also need to bear various costs such as transmission and distribution fees, system operation costs, and government funds, thereby ensuring fair responsibility sharing.
On February 9, 2025, the National Development and Reform Commission and the National Energy Administration jointly announced a notice regarding the “Deepening of Market-Oriented Reforms for New Energy Grid Prices to Promote High-Quality Development” (Fa Gai Jia Ge [2025] No. 136). This notice proposed that new energy electricity would fully enter the power market, with prices determined by market forces. A price difference settlement mechanism was also to be established, with June 1, 2025, marking a transition point for existing and new projects, which would be settled at different prices. Specific implementation plans were to be announced by provinces by the end of the year.
Currently, companies involved in household and distributed solar energy storage projects are rushing to complete existing projects before the June 1 deadline. However, many are also anxious about the uncertain market conditions that may follow, particularly regarding electricity pricing and grid integration. This new policy poses challenges for the distributed solar sector, especially with the uncertainty surrounding grid-connected electricity and pricing, which severely impacts investment returns.
In response to these challenges, the GEA and the China Distributed Solar Energy Storage Brand Alliance decided to hold a discussion seminar to address how to develop the household and distributed energy storage market in light of the new policies. The seminar saw active participation from over 30 major industry players, including Trina Solar, Yuxiu Leasing, Zhejiang Zhongtuo, Zhonglai Co., Chint Aneng, Canadian Solar, Jinko Solar, and many others. The attendees represented various sectors including development, construction, operation, state-owned and private enterprises, microgrids, virtual power plants, components, inverters, energy storage, and charging stations.
The discussions were lively, with participants expressing their views and suggestions. There was a consensus that while the household and distributed energy storage market has been growing rapidly in recent years, it faces numerous issues such as intense competition, high development costs, significant electricity price discounts, and a lack of quality control in power stations. The rapid expansion of the distributed solar market has strained the grid’s capacity, resulting in many areas halting grid connections and approvals.
To address these challenges, participants proposed several key recommendations:
- Industry Self-Regulation: The distributed solar industry is currently facing challenges such as high development costs and increasing downward pressure on electricity prices. It is crucial for leading enterprises to set a positive example and collaborate to regulate market behaviors.
- Cost Optimization: Utilizing efficient products and advanced technologies can help lower system investment costs, while operational maintenance and smart technologies can enhance electricity generation.
- Embracing New Technologies: Integrating technologies such as energy storage and charging, microgrids, virtual power plants, and AI can create zero-carbon parks, increase self-consumption, and enhance the economic value of photovoltaic generation and storage.
- Exploring International Markets: Companies should avoid transferring domestic competition to international markets and should focus on maintaining the reputation of Chinese enterprises abroad while generating economic benefits.
Participants also emphasized the importance of collaboration among companies and the recruitment of talent to adapt to new technologies. In the evolving landscape, firms must possess core technologies to effectively navigate future developments, moving away from the previous aggressive market capture strategies.
As policies vary across provinces, a one-size-fits-all approach is becoming obsolete. The focus should shift toward localization, differentiation, and intelligent strategies centered on customer needs. The government has mandated that provinces introduce specific implementation policies by the end of the year, with some already in place. To tackle new challenges, it is essential for government departments and enterprises to conduct thorough research and exploration. Industry associations and research institutions should collaborate with companies to study new technologies and models, providing reasonable suggestions to government entities for developing more feasible and predictable policies.
In conclusion, the GEA and the Alliance plan to gather leading industry companies and experts for further multi-layered discussions, aiming to issue a health initiative for the industry and provide constructive recommendations to relevant government departments. This proactive and responsible approach is essential for collectively facing new challenges and embracing future opportunities.
At the end of the meeting, member representatives voted to approve the proposal appointing Ms. Gao Haichun, Co-Chair of Trina Solar and President of Trina Fuzhi, as the Executive Vice President of the GEA and Chairman of the China Distributed Solar Energy Storage Brand Alliance.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/successful-seminar-on-distributed-solar-storage-market-development-held-in-shanghai-amid-new-policy-changes/
