The most widely used distributed photovoltaic power generation system is the photovoltaic power generation project built on the roof of urban buildings.
I. What is residential distributed photovoltaic (PV)?
Residential distributed photovoltaic (PV) falls under the category of distributed PV. Correspondingly, there are also industrial and commercial distributed PV, PV+, etc. As the name suggests, residential PV refers to a small PV power station that places photovoltaic panels on the roof or in the yard of a family home.
What incentive models are currently used for residential distributed photovoltaic systems?
Internationally, there are currently three incentive models for residential distributed photovoltaic systems: the feed-in tariff (FIT) policy, the net metering policy, and the self-consumption policy.
1. Benchmark on-grid electricity price policy
Benchmark feed-in tariffs were a common policy adopted by European countries before 2011. Germany pioneered the implementation of the benchmark feed-in tariff law in 2000, which significantly boosted the German domestic photovoltaic (PV) market, making Germany the world's largest PV manufacturer for many consecutive years. Following Germany, other European countries also implemented benchmark feed-in tariff laws, leading to a rapid increase in the European PV market. In 2007 and 2008, the European PV market accounted for 80% of the global PV market. Under this model, the grid connection point is on the grid side, and the grid purchases all PV power generated at the benchmark feed-in tariff.
2. Net Electricity Settlement Policy
Net electricity billing policies were initially implemented primarily in the United States, with 42 out of 50 states adopting the net electricity billing method to encourage distributed photovoltaic (PV) and distributed wind power generation. After 2010, PV electricity prices in European countries fell below grid retail prices, and many countries also began adopting net electricity billing policies. This model requires annual electricity consumption to exceed PV generation. The PV grid connection point is located on the load side of the user's meter. Self-consumed PV electricity is not metered and is directly charged the grid retail price through energy conservation. PV power fed back into the grid drives the meter to rotate backwards, or is metered bidirectionally. Net electricity billing means that the difference between the consumed electricity and the electricity fed back into the grid is settled annually.
3. Self-consumption policy
In 2011, Germany introduced a "self-consumption" policy to encourage photovoltaic (PV) users to generate and consume their own electricity. The principle of this model is "self-consumption, surplus electricity fed back to the grid." The PV grid connection point is located on the load side of the user's meter, requiring the addition of a meter for PV power feedback, or setting the grid meter to bidirectional metering. Self-consumed PV electricity is not metered and is charged directly at the grid's retail price through energy-saving measures; power feedback is metered separately and settled according to the published PV feed-in tariff.
