More cost-effective than a subsidy

In 2013 and 2014, it was called the photovoltaic policy year, and many PV subsidy policies landed. All the subsidy policies are nothing more than two: First, the initial investment subsidies; Second, the degree of electricity subsidies.

Many people are discussing which kind of subsidies are more cost-effective.

The economical measurement of photovoltaic power must be considered in conjunction with the resource/power generation. I made a simple calculation, we can refer to use.

First, the calculation of the theory and premise

Mainly based on the following two formulas:

In the formula: P is the initial investment subsidy; A is the annual subsidy; i is the discount rate of funds.

When calculating, the boundary conditions make the following assumptions.

Second, the results of the calculation

1. Conversion of Initial Investment Subsidy

Calculated according to the data in Table 1, using the initial investment subsidies, P = 1 million;

Calculate using formula 2 to obtain A = 101,852 yuan

In the case of different amounts of power generation, to obtain the same subsidy, the subsidy is calculated into the following table.

Taking the average number of hours per year as 1500 hours as an example, explain the meaning of the numbers in the above table.

When the average number of full-year hours is 1500h, the average annual power generation capacity of a 1MWp project is 1.5 million kWh; if this 1.5 million kWh of electricity receives a subsidy of 0.0679 yuan per degree, a subsidy of 101,852 yuan will be obtained each year. Yuan/Wp's initial investment subsidies have a considerable impact on project revenue. Simply put, it is:

According to Table 2, the owner can combine the amount of power generation in the province where his project is located and the initial investment subsidy issued by the local government, and roughly convert the equivalent amount of the power subsidy.

2. Conversion of electricity subsidies

Calculated according to the data in Table 1, the use of electricity subsidies, A at different full-hours, and P calculated using Equation 1, are shown in the table below.

Taking the average number of hours per year as 1500 hours as an example, explain the meaning of the numbers in the above table.

When the average number of full-year hours is 1500 hours, the average annual power generation capacity of a 1MWp project is 1.5 million kWh; if this 1.5 million kWh of electricity receives a subsidy of 0.1 yuan per degree, it is equivalent to first obtaining a subsidy of 1,472,700 yuan. That is 1.4727 yuan / W. Simply put, it is:

According to Table 3, the landlord can roughly calculate the initial investment subsidy corresponding to the power generation situation of the province where his project is located and the degree of subsidy provided by the local government.

Through Table 2 and Table 3, the owners can simply compare the subsidy policies of different provinces and see which province has the most subsidies.

3. Comparison of two kinds of subsidy policies

The country’s current 0.42 yuan/kWh subsidy policy and the original Golden Sun subsidy policy are more cost-effective?

According to the Circular on Clearing the Golden Sun and Photovoltaic Building Demonstration Project for 2012 issued by a number of ministries and commissions in December 2013, and “to complete the grid-connected power generation before June 30, 2014, the subsidy standard will be 4 yuan/year. The tile is liquidated.” That is, the latest gold sun subsidy is 4 yuan/watt.

As can be seen from Table 3, if the owner’s financing cost is less than 8% and the power generation is above 1000 hours, the current electricity subsidy policy is worth more than the Golden Sun subsidy. (Of course, it's a lot of owners who don't have enough money yet. This is another thing to say.)

Third, the summary

1. The provinces with better power generation are more cost-effective with electricity subsidies; the provinces with poorer power generation are more cost-effective with initial investment subsidies.

2. If the owner can better control the cost of financing, the current degree of power subsidy policy is greater than the original Gold Sun subsidy policy.

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