The expansion of China's solar energy: Challenges and policy options

Given that China is committed to peak its carbon dioxide emissions in or before 2030 under the Paris Agreement, promoting renewable energy to substitute coal is one critical solution to facilitate China to meet this commitment. Among various types of renewable energy, solar energy is an attractive choice that will significantly influence the future of energy supply and energy usage. We first provide an overview of the most recent development of solar energy in China, in which the changing pattern from stationary to distributive forms is highlighted. We show that the diversified prices and subsidies across regions may play an important role in the changing pattern. Furthermore, we find major challenges that might impede the future expansion of solar energy. To address these challenges, governments need to propose policies to develop technologies and meditate the benefits of stakeholders, especially grid companies and electricity end-users. Market-based policies are also expected to accelerate the learning-by-doing process through R&D investment, which will help reduce and ultimately eliminate solar subsidies.