Comparative Study Of Photovoltaic-based Microgrid Subsidies

Photovoltaic-based microgrid(PV-MG)has high investment cost and long payback periods.During the beginning stages,subsidies are fundamental and necessary to accelerate the development of PV-MGs.However,financial funds are limited.Unreasonable subsidies forms and excessive subsidies can lead to a bigger deficit.In this study,we consider the question of how to promote PV-MG industry development and which supporting policy is more efficient in accelerating adoption.This dissertation introduces characteristics of the PV-MG,and we establish a subsidy efficiency model for electricity price subsidies and carbon trading subsidies under two sources of uncertainty-power demand and the investment cost reduction probability.This study aims to compare the two forms of subsidies from the perspective of promoting immediate investment and maximizing the subsidy policies efficiency for the government(minimizing the unit carbon-mitigation cost),and advance relevant policy proposals.The results suggest that a carbon trading subsidy is better than an electricity price subsidy,and a growing power demand for PV-MG power,stable consumer markets and high cost-reduction rates all contribute to achieving a more efficient subsidy.The above results reveal some good ideas for policy makers to realize their policy objectives.Subsidies can be combined with the carbon trading market and that it is essential to improve the demand for the power produced by the PV power generation projects.In addition,lowering the market risk,driving technology progress and developing relevant talents are all conducive to improving the subsidy efficiency.