Influence of FIT Rate on the Adoption of Residential PV System in China
The energy consumption in residential sector is increasing rapidly these years in China. The searching for a substitute for fossil energy sources has increased the interest in photovoltaic (PV) system as a friendly and reliable energy technology. In this study, as a promotion policy for PV system, the suitable feed-in tariff (FIT) rates are calculated assuming the cost payback time is within twenty years. Five cities, Harbin, Beijing, Shanghai, Kunming and Guangzhou located in different climate areas in China are selected for study. According to the simulation results, except Shanghai, the optimal FIT rate is close to the grid electricity rate especially in Beijing when there is no subsidy; on the other hand, the optimal FIT rates based on a 1/3 subsidy are less than the situation without a subsidy especially in Shanghai, the optimal FIT rate even reaches to zero when partly access to the grid.