The new policy says the work needed to connect a private photovoltaic system with a capacity below 5 megawatts to the grid will be performed free of charge. It also stipulates that State Grid purchases the surplus electricity generated by such a system.
Wu Xinhua said rooftop photovoltaic systems have become very popular in the United States and Europe. Even so, some believe the systems might be put to better use in factories.
"It still requires a huge investment and only has a long-term prospect of providing a return on capital for people who don't have subsidies," he said.
By relying on his professional abilities and private connections, Xu was able to buy the components for his system for about 20,000 yuan ($3,170), a relatively reasonable price.
"It might take other people more than 30,000 yuan to install one of these systems, including labor and other costs," Xu said.
Although the first connection in China between a residential photovoltaic systems and the State Grid took place in Qingdao, such an arrangement might prove more successful in central and western parts of the country, where there are more daylight hours, insiders said.
Many small and medium-sized producers of solar cells have gone bankrupt after seeing a decrease in the number of orders they have received from foreign markets.
To reduce the industry's dependency on exports, the government has begun to promote the use of distributed power generation, or the generation of electricity from many small sources.
About a week ago, Premier Wen Jiabao chaired a State Council executive meeting at which the topics of discussion included the Chinese photovoltaic industry's overcapacity, high dependency on overseas markets and financial difficulties.
Meng Xian'gan, deputy director of the China Renewable Energy Society, called for an expansion of the domestic market.
"Distributed solar-power generation will allow the industry to develop so long as grid connection problems are solved," he said.
xiechuanjiao@chinadaily.com.cn
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