How Are Residential Distributed PV Systems Defined and Subsidized

An individual (household) may act as the project entity to build a distributed PV facility. In principle, the installed capacity of a single project should not exceed 30 kW, and provincial energy authorities may simplify project management as appropriate. Distributed PV projects installed by individuals (households) follow the principle of "self-consumption first, surplus power fed into the grid, with the grid balancing surplus and shortfall". Self-consumed PV electricity automatically offsets the electricity drawn from the grid and is not traded; for surplus PV electricity fed into the grid, the grid company purchases it at the local benchmark price for desulfurized coal-fired power.