Study On Self-consumption Business Model And Its Incentive Policies Of The PV Power Generation

With the increasing depletion of non-renewable energy sources, sustainableenergy supply and national energy security problem have attracted highly attention tothe world. As a leader in renewable energy development and utilization of theindustry, Solar photovoltaic power generation industry driven by PV marketdeveloped rapidly in the United States, Germany, Japan and other developed countriesin recent years. China’s photovoltaic power generation market began in1970s.Aftermore than40years of development, China’s PV power generation has reached acertain scale with the new installed capacity of10GW and the total installed capacityof18GW. This mainly benefits from both the government’s incentive policies andgeneration enterprises’ exploring for the business model.Rational business model isthe key of the development of large-scale of PV power generation.Firstly, the paper reviews and analyzes the literatures research on business modeland incentive policies of PV power generation, which lay the theoretical foundationfor researching the business model of PV power generation.Secondly, this paper reviews the development of the world’s photovoltaicindustry development history and present situation, and then analyzes the presentstatue, trend of PV power generation development.The results indicate thatthere existsome problems such as unclear business models、unsound subsidy mechanism andhard grid connection inPV power generation market of China.Again,the paper studies two kinds of business models in the world FIT andSelf-consumption model. And then introduces these two modelsbriefly.Self-consumption business model is simply defined as generate power forown use.From the generation, characteristics, types of incentives to the relevantincentive policies, the paper studies the self-consumption business modelsystematically. And then the paper describes the application of self-consumptionbusiness model in certain countries, which provides a refe rence to select specificbusiness model for China’s PV power generation. The results show that theself-consumption business model is now widely used in the PV market model, butalso is the major direction of the PV business model in the future.Then, the paper builds an investment-decision model, based on self-consumptionbusiness model, to examine the impact of the incentive policy factors on the investor’sdecision.According to the numerical simulation, the results show that power price subsidy level and its validity, the initial investment subsidy level, the volatility ofpower price and the investment cost can all affect the investor’s decision. The degreeof impact of the subsidy validity is greater than that of power price subsidy level,while the volatility of power price and the investment cost is greater than the subsidyvalidity. Because of the insufficiency of the model, the paper cannot distinguish theimpact degree of the volatility of power price and the investment cost.Finally, according to the PV business model and numerical simulation results,the recommendations are made to promote the rapid expansion of PV applicationmarket from the corporate level and the government level. Enterprises should select areasonable business model, and the government should develop appropriate incentivesfor the development of photovoltaic industry, and strengthenthe governmentregulation of the market.