Henan Province Releases Policy Document to Promote the Healthy and Sustainable Development of Distributed Photovoltaic Power Generation (Full Text Included)

On February 2, the Henan Provincial Development and Reform Commission (Provincial Energy Bureau) issued the "Notice on Promoting the Healthy and Sustainable Development of Distributed Photovoltaic Power Generation" (hereinafter referred to as the "Notice"). Based on the latest national policy requirements and the actual development of distributed photovoltaic power generation in Henan, the Notice makes arrangements and deployments for encouraging the exploration of innovative models, continuously improving the development environment, continuously regulating industry management, promoting the healthy development of household photovoltaic power generation, improving the adjustment capacity of distributed photovoltaic power generation, and promoting the coordinated development of grid and source. It clarifies the "Technical Specifications for Distributed Photovoltaic Access to the Grid in Henan Province (Trial)", which is conducive to promoting the healthy and sustainable development of distributed photovoltaic power generation in the province.

It is understood that in recent years, the monthly newly added scale of distributed photovoltaic power generation in Henan Province has continuously ranked first in the country, making outstanding contributions to optimizing energy structure, ensuring energy supply, reducing enterprise energy costs, and promoting farmers' income increase. At the same time, the increasingly difficult on-site consumption, the need for improvement in business models, and the lack of clear technical standards for distributed photovoltaic power generation are becoming increasingly prominent. Currently, most household photovoltaic power stations in our province are built using a cooperative development model, registered in the name of residents, and constructed with funds from enterprises, which easily leads to a mismatch between the beneficiary and the responsible party.

To this end, in accordance with the requirements of the "Henan Provincial Management Measures for the Approval and Filing of Enterprise Investment Projects", the Notice standardizes the project filing entity based on the principle of "who invests, who benefits, who files". For household photovoltaic projects where individuals use their own houses and purchase equipment for construction, relevant materials are provided, and the grid company will file them on behalf of the individual. For household photovoltaic projects that aim for profit through renting other people's rooftops or renting photovoltaic power generation facilities, they will be filed in the name of the enterprise. At the same time, in order to further improve the service level, the Notice requires local filing authorities to guide local grid companies to provide filing services on behalf of enterprises according to the wishes of the owners, creating a good environment for enterprise investment.

Henan Provincial Development and Reform CommissionNotice on Promoting the Healthy and Sustainable Development of Distributed Photovoltaic Power Generation

Development and Reform Commissions of all provincial cities, Jiyuan Demonstration Zone Development and Reform and Statistics Bureau, Zhengzhou Airport Economic Zone Development and Reform and Statistics Bureau, State Grid Henan Electric Power Company, and all photovoltaic development enterprises:

In order to further improve the development level of distributed photovoltaic power generation in our province and promote the healthy and sustainable development of the industry, based on the requirements of the "Henan Provincial Management Measures for the Approval and Filing of Enterprise Investment Projects" (Yu Zheng Ban [2020] No. 23) and the "Guidelines for Capacity Assessment of Distributed Power Generation Accessing the Grid" (DL/T2041-2019), the relevant matters are hereby notified as follows.

I. Encourage Exploration of Innovative Models and Continuous Improvement of the Development Environment

(1) Strengthened Coordinated Guidance. All localities should adhere to the principle of "market-led, government-guided", earnestly fulfill their responsibilities in scientific planning and management, carefully investigate and map resources from party and government organs, public buildings, commerce and industry, and household rooftops, guide enterprises to fully utilize their own advantages, comprehensively promote the development and construction of various distributed photovoltaic projects, scientifically control the development pace in combination with grid carrying capacity and electricity load growth, and strengthen the level of supply and demand coordination.

(2) Encourage Model Innovation. Support localities in conducting in-depth cooperation with upstream and downstream photovoltaic development enterprises and financial institutions to explore the establishment of a mechanism for sharing benefits among incremental grid, smart microgrids, and large power grids, promote the integrated development of source, grid, load, and storage, research and promote the construction of diversified application scenarios such as "photovoltaic + energy storage" and integrated photovoltaics, energy storage, and charging, and guide the integrated development of emerging intelligent photovoltaics and related industries in a way that suits local conditions, promoting product innovation, technological innovation, and business model innovation.

(3) Continuously Optimize the Development Environment. All localities should further standardize filing management, not arbitrarily add pre-conditions beyond the legally stipulated conditions, and not use filing as a pretext for administrative licensing. At the same time, they should strictly implement the system of informing about safety management and quality control of project filing. On this basis, they should actively explore forms such as financial risk notification letters in a way that suits local conditions, increase publicity and reminders about the income and risks of distributed photovoltaic development, effectively protect the public's right to know, and create a fair, just, open, and transparent environment for the development of distributed photovoltaics.

II. Continuously Standardize Industry Management and Promote the Healthy Development of Household Photovoltaic Power Generation

(1) Promote Standardized Contract Agreements. Guide resident users and photovoltaic development enterprises and household photovoltaic dealers to refer to the standardized contract templates recommended by the National Energy Administration, strengthen consultations, further clarify the development methods, profit distribution ratios, and risks borne by each party, and lay the foundation for each party to effectively protect its own legitimate rights and interests. The contract (agreement) must clearly state that "enterprises shall not use residents' information to obtain loans or disguised loans without the knowledge of the residents, and shall not transfer financial risks to the residents."

(2) Strengthen Enterprise Self-Discipline. The development and utilization of household photovoltaics involves the vital interests of the masses. All project development enterprises should standardize construction in strict accordance with the requirements of the "100 Questions and Answers on the Construction and Operation of Household Photovoltaics" (2022 edition) and the "Guidelines for the Construction and Operation of Household Photovoltaics" (2022 edition), earnestly implement relevant requirements such as building load, wind resistance, waterproofing technology, and standardized construction, reasonably determine the construction method, and purchase and use photovoltaic components in accordance with national technical standards to ensure safe operation of the project.

(3) Standardize the Filing Management of Household Photovoltaics. In accordance with the principle of "who invests, who benefits, who files", clarify the project filing entity, and the specific construction party shall be determined autonomously by the rooftop owner according to market principles. For household photovoltaic projects where individuals use their own houses and purchase equipment for construction, provide relevant materials such as proof of house ownership and project self-investment commitment, and the grid company will file them on behalf of the individual; for household photovoltaic projects that aim for profit through renting other people's rooftops or renting photovoltaic power generation facilities, they will be filed in the name of the enterprise; the filing information must clearly state the project investment entity and operation and maintenance entity. The filing entity shall be responsible for the authenticity, legality, and completeness of the filing information and shall not apply for filing through improper means such as concealing circumstances or making false declarations.

Local filing authorities should further simplify the filing process, and in particular, further increase support for enterprise investment in household photovoltaic projects. According to the wishes of the owners, they should guide local grid companies to provide free filing services on behalf of enterprises. Grid companies should verify the consistency of the equipment (including photovoltaic components and inverters) purchase invoices with the filing entity before the project is connected to the grid. Those that are inconsistent should be connected to the grid only after the relevant filing information is improved.

(4) Strengthen On-site and Post-event Supervision. All localities should strengthen contact with grid companies and photovoltaic development enterprises (investment entities, operation and maintenance entities), establish a regular coordination mechanism, promptly coordinate to solve problems and resolve disputes; increase policy publicity efforts, and use credit platforms and other means to strictly investigate and deal with behaviors that harm the interests of the masses in accordance with laws and regulations, and make every effort to maintain the market order of household photovoltaics.

For existing household photovoltaic projects that have been completed and connected to the grid, all localities should guide grid companies to conduct project information surveys, clarify the owners of the house rooftops and the owners of photovoltaic assets, urge the owners of photovoltaic assets to earnestly fulfill their main responsibilities, implement the operation and maintenance and safety responsibility units of the project, and promote the formation of a good situation where "there are people to answer questions, people to manage things, and people to take responsibility". The work of surveying, summarizing, and reporting shall be completed by the end of 2023.

III. Improve the Adjustment Capacity of Distributed Photovoltaic Power Generation and Promote the Coordinated Development of Grid and Source

(1) Seriously implement the requirements for access carrying capacity assessment. Local authorities should organize grid companies to conduct distributed photovoltaic carrying capacity assessment and accessible capacity calculation within the region, clarify the red, yellow, and green areas for distributed photovoltaic development, publish them to the public quarterly, and shorten the calculation and publication cycle in a timely manner; give priority support to distributed photovoltaic projects in green areas, and distributed photovoltaic projects in yellow and red areas should be developed and constructed only after the conditions for consumption are met. Grid companies should make full use of information technology to accelerate the construction of new energy cloud platforms to provide convenient services for information inquiry and result release. Our commission will actively promote the relevant sampling and evaluation work such as distributed photovoltaic carrying capacity assessment in accordance with national requirements.

(2) Continuously improve carrying capacity. Local authorities should organize local grid companies and photovoltaic development enterprises to formulate a work plan for improving the carrying capacity of distributed photovoltaics. Through scientifically and reasonably planning grid construction, reasonably planning energy storage facilities construction, and implementing confluence and voltage boosting access, etc., effectively improve the access carrying capacity of distributed photovoltaics. Encourage photovoltaic development enterprises to adopt an overall planning and coordinated development model in red and yellow areas to improve the regional grid carrying capacity and innovate application scenarios for distributed photovoltaics.

(3) Adhere to on-site and nearby consumption. Based on the assessment results of the carrying capacity of distributed photovoltaic access to the grid, reasonably arrange the scale of immediate distributed photovoltaic development. The photovoltaic capacity (including the capacity that has been filed for construction or is pending construction) connected to the main transformer (distribution transformer) of each level grid should not exceed 80% of the rated capacity of the equipment. Encourage household photovoltaics to "self-generate and self-use, and excess electricity to the grid", and industrial and commercial photovoltaics to "self-generate and self-use entirely", achieving on-site and nearby consumption at the user side, improving the efficiency of distributed photovoltaic power generation, and reducing the operating pressure on the public power grid.

(4) Standardize network-related technical standards. Based on national and industry-related standards, our commission, together with the State Grid Henan Electric Power Company and relevant scientific research and design units, has compiled the "Technical Specifications for Distributed Photovoltaic Access to the Grid in Henan Province (Trial)" (see Appendix for details). The requirements of the document should be implemented to standardize the communication, protection, metering, and automation technical standards of distributed photovoltaic power generation projects, accept unified dispatching, fairly participate in the power system operation regulation and peak regulation auxiliary service market, and promote grid-source synergy and interaction.

Local authorities can formulate implementation rules based on their local conditions to promote the healthy and sustainable development of distributed photovoltaic power generation. Report any problems found during the work process in a timely manner.

This notice shall come into effect from the date of issuance.