According to Wechat Official Account @GlobalPV, the development logic of distributed photovoltaic (PV) in China is undergoing a profound restructuring, from the implementation of the 2024 "Administrative Measures for the Development and Construction of Distributed Photovoltaic Power Generation" to the issuance of Document No. 136 on full grid connection of new energy power generation.
By the end of 2024, China's total installed PV capacity reached 890 GW, with distributed PV accounting for 370 GW or 42%, becoming a "half of the country" in the industry. However, after a period of rapid growth, the "county-wide promotion" model that once sparked a boom has quietly cooled down, marking a crucial shift in distributed PV from scale expansion to quality cultivation.
Overall Promotion Encounters Headwinds
In June 2021, the National Energy Administration launched a pilot program for the county-wide promotion of distributed PV, identifying 676 pilot counties. However, progress has fallen short of expectations.
Looking at regions with better completion rates, in Nanjing's Liuhe District, Jiangsu Province, the newly grid-connected distributed PV capacity on rooftops reached 127 MW during the pilot period, completing 120% of the total pilot task. Zaozhuang City in Shandong Province became the only prefecture-level city in the province to be fully included in the pilot for county-wide rooftop distributed PV development. Since the pilot program began, the newly installed distributed PV capacity has reached 1,143.9 MW. Among them, Tengzhou City added 620.6 MW of installed capacity, and Shanting District added 91.9 MW. On March 14, 2025, the National Energy Administration announced that a total of 56 counties (cities, districts) nationwide had fully achieved the "county (city, district) rooftop distributed PV development pilot" work goals, including 8 in Hebei, 7 in Jiangsu, 21 in Zhejiang, 1 in Fujian, 13 in Shandong, 3 in Henan, 1 in Hunan, 1 in Hainan, and 1 in Shaanxi. These regions provide valuable experience for other areas.
However, from a national perspective, the overall completion rate is not ideal. As of the end of April 2023, the cumulative grid-connected capacity in the pilot areas for county-wide rooftop distributed PV nationwide was 36.92 GW, only 22% of the planned target. In Henan and Shaanxi provinces, the completion rate was even less than 6%.
Policy Adjustment Guides Shift in Direction
On January 23, 2025, the National Energy Administration officially issued the "Administrative Measures for the Development and Construction of Distributed Photovoltaic Power Generation." This policy signals a return of distributed PV to the principle of "local consumption, local balance," making the previous approach of pursuing large-scale expansion through county-wide promotion no longer applicable.
Localities Continue to Advance Related Work
Some regions selected for the pilot program are actively carrying out follow-up work. For example, Guangdong Province released a plan in 2024, initially selecting 25 counties (cities, districts) as pilot areas for "PV + building" applications, specifying the installed capacity targets for different stages by the end of 2026. In April 2025, the Yangxi County Housing and Construction Bureau, in conjunction with relevant units, provided guidance to enterprises on improving PV design plans to promote the "PV + building" application pilot work. In early 2025, Nanzhanghe Village in Changzi County, Shanxi Province, ushered in a demonstration pilot project for village-wide PV power generation, adopting a new grid-connection model. The State Grid Changzi County Power Supply Company provided comprehensive support, optimizing the county's power grid structure and promoting project construction.
Policy Guidance and Support Continuously Strengthened
The National Energy Administration issued the "Notice on Further Organizing and Implementing the 'Thousands of Households Action'," requiring local authorities to guide the scientific layout and orderly development of rural distributed PV based on the grid's carrying capacity. It also organized grid companies to strengthen the upgrading and transformation of supporting power grids to ensure the healthy and sustainable development of distributed PV in rural areas. At the same time, the "four prohibitions" were proposed: no designation of operating entities, no mandatory requirements for supporting industries, no monopolistic development through franchise or other means, and no infringement of farmers' interests, to promote the healthy and orderly development of distributed PV.
Overall, the county-wide promotion of PV has experienced an initial period of rapid growth, and is now entering a stage of adjustment and reflection, focusing more on the high-quality development and local consumption of distributed PV. The future trend will be towards a more standardized and rational direction.
Source：https://mp.weixin.qq.com/s/ScC6HZS5YyhtLPQaFpEQNw