Generating interest in homegrown power
A new installation at a home in one of China's largest ports could herald an upsurge in domestic use of new energy.
Dong Qiang's neighbors have suddenly become very friendly. Although the 38-year-old knew his neighbors by sight, they have never before paid him a visit. Now, however, they have started to descend on him in droves.
The reason? The "big screens" Dong recently installed on his roof.
The "big screens" are photovoltaic, or PV, cells that generate electricity for domestic use by harnessing solar power. Each panel is roughly the same size as a four-seater dining table and Dong expects the system to reduce his carbon emissions by as much as five metric tons every year.
It's little wonder that Dong's new appliances have attracted so much attention: several silicon batteries affixed to the roof mean the house, in Tianjin's Binhai New Area, stands out among the other dwellings in the area.
He also is the first resident of Tianjin, a harbor city in Northern China and one of the country's four municipalities, to decide to go green on the roof of his own home.
Dong said he received feedback from the power supplier, Tianjin Binhai Electricity Co, in March, just a week after he filed an application to install the panels, which are more correctly known as distributed PV generators.
Dong's new equipment, which has been in operation for two months, was connected to China's national electricity network in late May.
"The grid company sent a team of mechanics to my house to assess its suitability to host a household solar power plant. They installed a new meter to record the power generation capacity, and that was that," he said, adding that the procedure was much less difficult and time-consuming than he had anticipated.
"It was much easier than I thought. Generating power at home for one's own use is still a novel thing in China. I thought they would probably have reservations about approving my application, but it all went pretty smoothly."
Dong, who works for a power distribution equipment manufacturer, invested about 65,000 yuan ($10,596) on the infrastructure, which includes 3 kW of PV panels and 3 kW of wind power turbines. "I hope to recoup the investment in 10 or 12 years," he said.
Inspiring the neighbors
Dong's decision has inspired many living near his modified, eye-catching house.
Li Jiansheng, who lives in the building next to Dong's home, visited his neighbor after the unusual facility was set up almost directly above his head.
"I was concerned at first. I wondered if his roof could support the weight of the panels and whether the facility might be dangerous during thunder and lightning storms. But Dong showed me the equipment and explained the method of operation. I was pleased to see that a lightning rod had been attached."
Li was surprised to learn that, in addition to being environmentally friendly, Dong's project has also resulted in a business opportunity; the solar panels are connected to the national network, which means any surplus electricity generated can be automatically transmitted to the public power network. The grid company will pay 0.41 yuan for each kWh of electricity it receives from Dong's set-up, a price determined by Tianjin's municipal government.
Encouraged by their neighbor's initiative, Li and two other local residents have applied to Tianjin Binhai Electricity Co to install their own distributed PV generators and are dealing with the preliminary paperwork.
"The method was absolutely new to me. Although the price is pretty high, I still think it's an attractive proposition to help large families or small and medium-sized companies reduce their daily expenses," Li said.
Grid connection
Dong's initiative was made possible by State Grid Corp, which allowed the distributed photovoltaic solar power to be connected to the national grid free of charge via a regulation that took effect in November, in a bid to support the renewable-energy industry.
According to the regulation, State Grid will subsidize distributed PV solar electricity producers who connect their services to customers. The move is part of an attempt to help Chinese producers of PV panels, who are under pressure from anti-dumping investigations by both the United States and the European Commission. The EC recently imposed anti-dumping taxes of 11.8 percent on Chinese-made solar panels and the tariff will be extended to 47.8 percent from August 6.
Connection to the grid costs at least 4.2 million yuan for a PV solar project of 1 million watts, according to Wang Sicheng, a researcher at the Energy Research Institute of the National Development and Reform Commission.
The connection cost is much lower for private individuals and varies according to location. Ren Kai, who in November became the first person in China to apply for a grid connection, said the practice is unlikely to save the industry unless more favorable policies can be introduced to attract more participants.
In addition to providing the daily power requirement for his home in the Shunyi district of Beijing, Ren sells his extra electricity to State Grid at a price of 1 yuan per kWh. "I can recoup my investment within eight years. After that, the return rate is expected to be 9.3 percent, much higher than a bank interest rate," he said.
However, individuals do not enjoy the same government subsidies as companies, according to State Grid's regulations.
"Besides, although the State Grid allows distributed PV plants to be connected, they set the limit for total installed capacity at just six megawatts. Distributed PV plants are novel and should be developed step by step. Currently, both the State Grid and customers like me are 'water testers' whose experience will be invaluable for future participants when the policy is introduced on a larger scale," said Ren.
He admitted that the incentives for distributed PV plants in China still lag behind many other countries.
The electricity generated by distributed PV plants accounts for less than 1 percent of China's total PV generation, compared with around 70 percent in Germany and 80 percent in the US.
"There is great market potential for household PV systems," said Ren, who previously worked as a sales representative for a PV panel manufacturer, but has now registered his own company providing all-inclusive services for companies and families interested in generating their own electricity.
Ren's team designs, installs and adapts the equipment according to the customer's house. The team can also help with the paperwork required by local grid companies.
"I receive a lot of inquiries from all over the country every day, but the number of people who follow through and decide to make a deal is far lower than the number of inquiries," he said.
To promote the company, Ren is working on a distributed PV project for a Lama temple in Qinghai province, charging only the cost price.
Feeling the way
Li Ting, publicity officer at Tianjin Binhai Electricity Co, a local office of State Grid Corp, China's State-owned power utility, said the company was a little surprised when it received Dong's request.
"Although domestic power generation plants are allowed, there has never been an application before," she said, admitting that a lack of experience in dealing with individual applicants means the company is still feeling its way. So far, it has received just four applications from private individuals.
"The government regulation for setting up household power generators is not specific enough to be carried out. The regulations governing the technology, security and the distribution of surplus power have still to be clarified," Li said.
Research by China Daily shows that a dozen residents across the country have opted for the new method of energy generation, and at least four of them have connected their equipment to the local grid. Perhaps unsurprisingly, four of the applicants have worked in the energy industry.
"Although many industry insiders are accustomed to the new methods, it will take time for the public to become aware of distributed PV power plants," said Ding Jie, an engineer at the China Electricity Power Research Institute.
"An increasing number of people are becoming interested in the issue and I'm concerned the instability of the equipment's capacity to generate power may damage the public power utilities.
"Although some solar panel manufacturers are counting on the new policy to rejuvenate their industry, I have to say the technology itself still has to be improved before it can be introduced into the market safely."
Back in Tianjin, Dong said he understands the concerns expressed, but believes his new generating setup will prove beneficial, both for himself and others. "Although it may seem unprofitable in the short-term, it could prove very beneficial in the long run, especially in terms of saving energy and environmental protection. Fossil-fuel energy will die out one day and human beings have to figure out a new way of producing energy."
The reason? The "big screens" Dong recently installed on his roof.
The "big screens" are photovoltaic, or PV, cells that generate electricity for domestic use by harnessing solar power. Each panel is roughly the same size as a four-seater dining table and Dong expects the system to reduce his carbon emissions by as much as five metric tons every year.
It's little wonder that Dong's new appliances have attracted so much attention: several silicon batteries affixed to the roof mean the house, in Tianjin's Binhai New Area, stands out among the other dwellings in the area.
He also is the first resident of Tianjin, a harbor city in Northern China and one of the country's four municipalities, to decide to go green on the roof of his own home.
Dong said he received feedback from the power supplier, Tianjin Binhai Electricity Co, in March, just a week after he filed an application to install the panels, which are more correctly known as distributed PV generators.
Dong's new equipment, which has been in operation for two months, was connected to China's national electricity network in late May.
"The grid company sent a team of mechanics to my house to assess its suitability to host a household solar power plant. They installed a new meter to record the power generation capacity, and that was that," he said, adding that the procedure was much less difficult and time-consuming than he had anticipated.
"It was much easier than I thought. Generating power at home for one's own use is still a novel thing in China. I thought they would probably have reservations about approving my application, but it all went pretty smoothly."
Dong, who works for a power distribution equipment manufacturer, invested about 65,000 yuan ($10,596) on the infrastructure, which includes 3 kW of PV panels and 3 kW of wind power turbines. "I hope to recoup the investment in 10 or 12 years," he said.
Inspiring the neighbors
Dong's decision has inspired many living near his modified, eye-catching house.
Li Jiansheng, who lives in the building next to Dong's home, visited his neighbor after the unusual facility was set up almost directly above his head.
"I was concerned at first. I wondered if his roof could support the weight of the panels and whether the facility might be dangerous during thunder and lightning storms. But Dong showed me the equipment and explained the method of operation. I was pleased to see that a lightning rod had been attached."
Li was surprised to learn that, in addition to being environmentally friendly, Dong's project has also resulted in a business opportunity; the solar panels are connected to the national network, which means any surplus electricity generated can be automatically transmitted to the public power network. The grid company will pay 0.41 yuan for each kWh of electricity it receives from Dong's set-up, a price determined by Tianjin's municipal government.
Encouraged by their neighbor's initiative, Li and two other local residents have applied to Tianjin Binhai Electricity Co to install their own distributed PV generators and are dealing with the preliminary paperwork.
"The method was absolutely new to me. Although the price is pretty high, I still think it's an attractive proposition to help large families or small and medium-sized companies reduce their daily expenses," Li said.
Grid connection
Dong's initiative was made possible by State Grid Corp, which allowed the distributed photovoltaic solar power to be connected to the national grid free of charge via a regulation that took effect in November, in a bid to support the renewable-energy industry.
According to the regulation, State Grid will subsidize distributed PV solar electricity producers who connect their services to customers. The move is part of an attempt to help Chinese producers of PV panels, who are under pressure from anti-dumping investigations by both the United States and the European Commission. The EC recently imposed anti-dumping taxes of 11.8 percent on Chinese-made solar panels and the tariff will be extended to 47.8 percent from August 6.
Connection to the grid costs at least 4.2 million yuan for a PV solar project of 1 million watts, according to Wang Sicheng, a researcher at the Energy Research Institute of the National Development and Reform Commission.
The connection cost is much lower for private individuals and varies according to location. Ren Kai, who in November became the first person in China to apply for a grid connection, said the practice is unlikely to save the industry unless more favorable policies can be introduced to attract more participants.
In addition to providing the daily power requirement for his home in the Shunyi district of Beijing, Ren sells his extra electricity to State Grid at a price of 1 yuan per kWh. "I can recoup my investment within eight years. After that, the return rate is expected to be 9.3 percent, much higher than a bank interest rate," he said.
However, individuals do not enjoy the same government subsidies as companies, according to State Grid's regulations.
"Besides, although the State Grid allows distributed PV plants to be connected, they set the limit for total installed capacity at just six megawatts. Distributed PV plants are novel and should be developed step by step. Currently, both the State Grid and customers like me are 'water testers' whose experience will be invaluable for future participants when the policy is introduced on a larger scale," said Ren.
He admitted that the incentives for distributed PV plants in China still lag behind many other countries.
The electricity generated by distributed PV plants accounts for less than 1 percent of China's total PV generation, compared with around 70 percent in Germany and 80 percent in the US.
"There is great market potential for household PV systems," said Ren, who previously worked as a sales representative for a PV panel manufacturer, but has now registered his own company providing all-inclusive services for companies and families interested in generating their own electricity.
Ren's team designs, installs and adapts the equipment according to the customer's house. The team can also help with the paperwork required by local grid companies.
"I receive a lot of inquiries from all over the country every day, but the number of people who follow through and decide to make a deal is far lower than the number of inquiries," he said.
To promote the company, Ren is working on a distributed PV project for a Lama temple in Qinghai province, charging only the cost price.
Feeling the way
Li Ting, publicity officer at Tianjin Binhai Electricity Co, a local office of State Grid Corp, China's State-owned power utility, said the company was a little surprised when it received Dong's request.
"Although domestic power generation plants are allowed, there has never been an application before," she said, admitting that a lack of experience in dealing with individual applicants means the company is still feeling its way. So far, it has received just four applications from private individuals.
"The government regulation for setting up household power generators is not specific enough to be carried out. The regulations governing the technology, security and the distribution of surplus power have still to be clarified," Li said.
Research by China Daily shows that a dozen residents across the country have opted for the new method of energy generation, and at least four of them have connected their equipment to the local grid. Perhaps unsurprisingly, four of the applicants have worked in the energy industry.
"Although many industry insiders are accustomed to the new methods, it will take time for the public to become aware of distributed PV power plants," said Ding Jie, an engineer at the China Electricity Power Research Institute.
"An increasing number of people are becoming interested in the issue and I'm concerned the instability of the equipment's capacity to generate power may damage the public power utilities.
"Although some solar panel manufacturers are counting on the new policy to rejuvenate their industry, I have to say the technology itself still has to be improved before it can be introduced into the market safely."
Back in Tianjin, Dong said he understands the concerns expressed, but believes his new generating setup will prove beneficial, both for himself and others. "Although it may seem unprofitable in the short-term, it could prove very beneficial in the long run, especially in terms of saving energy and environmental protection. Fossil-fuel energy will die out one day and human beings have to figure out a new way of producing energy."
