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A solar panel on my roof top?
Shanghai Development and Reform Commission recently released the "Shanghai Solar PV project Temporary Legislation." This legislation enables people to install private solar panels on their roof tops for the first time. People will even get paid if they generate electricity for the grid.
This is very is interesting. 3 years ago when I switched my focus from the semiconductor industry to solar, I asked one question to myself: when on earth will we be able to install personal solar panels on domestic roof tops in Shanghai as people do in Germany? This door has finally opened.
However, this process will be complex. This is not a simple solution where a person buys a module, installs it, and connects it to the grid. The legislation will force an interested person to treat this as if he is starting a business. Before starting, the business owners will have to prepare the business plan and the application proposals, with a deep research on the investment, out-put, meteorological data, and technical solutions. Then the proposal will need to be approved by the City Planning Bureau, Environment Protection Bureau and the Real Estate Bureau. Then, of course, the technical solutions will have to be examined by the grid company of the city. Before it goes to Shanghai DRC for final approval, it must go to district DRC first…
All these steps make it really complex for non solar professionals and there is no installation company currently serving the private market. However, this is not a problem for me. I have some friends who are doing some demonstration projects for various government agencies, and I guess a lot of solar people know people involved in these kinds business. All business starts from those who know it well, right?
But there is another problem: it is expensive. The cost of doing this is something equivalent to the price of a BMW. I can get bank loan if I buy BMW, but is there any bank loan for a solar energy system? I am doubtful that there is. The banks have not yet realized how to profit from solar cells. People can apply for bank loans for condos, cars, travels, and even for luxury goods, but not for solar, especially at this moment. Even the banks in Europe have reduced the bank loans for solar projects now.
Most of all, I do not have a roof top in Shanghai. I'll have to consider my father’s house in the countryside instead.
It seems there is still a long way to go for retail solar business in China.
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Dylen Liu is an expert on China's solar energy sector.
