In this field, due to the trivial projects, small quantity and difficult management, they are all deeply cultivated by private enterprises, and central enterprises and state-owned enterprises have always been on the sidelines of this.

Central enterprises and state-owned enterprises lead

"The business is not easy to do now," Liu Hu, who is engaged in distributed photovoltaic power generation business, told Interface News, "We cannot compare to central enterprises and state-owned enterprises."

has always been a wait-and-see attitude in this field, due to the trivial projects, small quantity and difficult management, private enterprises have been deeply rooted in this area. However, since the second half of 2021, the policies promoted by the whole county have ignited the distributed photovoltaic market.

In my country, distributed photovoltaic power stations can be divided into rooftop distributed photovoltaic power stations and photovoltaic power stations with no more than 20 megawatts of fishing light complementarity, agricultural light complementarity and forest light complementarity. Roof distributed photovoltaic power stations mainly include industrial roof distributed photovoltaic power stations, commercial roof distributed photovoltaic power stations and household roof distributed photovoltaic power stations. Photovoltaic power stations such as fishing and light complementarity, agricultural and light complementarity, etc. are photovoltaic power stations built on the water surface of fish ponds, agricultural greenhouses, and forest land .

In late June 2021, the National Energy Administration Comprehensive Department issued a notice on submitting the pilot plan for roof distributed photovoltaic development in the entire county (city, district). The curtain of photovoltaic county-wide promotion has officially opened. Just 4 days after the above notice was issued, State Power Investment Corporation reached a cooperation intention with five counties and cities. One month later, another central energy enterprise, National Energy Group , will issue a notice: By the end of 2022, the National Energy Group system development (leading, participating and signing development agreements) will have no less than 500 counties (cities, districts). On September 14, 2021, the National Energy Administration of officially confirmed the pilot list for 676 whole counties to promote.

For a time, the five major power central enterprises: National Energy Investment Group , China Huadian Group , China Huadian Group , China Datang Group , National Electric Power Investment Group , and the "six small wealthy families" Guotou Power , China General Nuclear Corporation, Three Gorges Group , China Resources Power , China Energy Conservation (Solar Energy), and China Nuclear Corporation have entered the market one after another.

State-owned investment platforms represented by Zhejiang Energy, Guangdong Energy Group, , Guangzhou Development, Beijing Energy , Shenzhen Energy Network, Yunnan Energy Investment , Water Energy Network, Shenneng , Jinneng, Wujiang Energy Network, etc. are not willing to lag behind. Energy giants such as

, , Sinopec, , and Total have also joined the melee of distributed photovoltaic business.

Whether it is a central enterprise or a listed company under local state-owned enterprises, they are rich and powerful, and they have the right time and place in this competition.

The market value of related listed companies under China Power Group exceeds 800 billion yuan, and the market value of two listed companies under Sanxia Group is also close to 680 billion yuan. Among local state-owned enterprises, Guangzhou Development and Zhejiang New Energy are also very strong.

Liu Hu told Interface News that central enterprises such as , five major power groups, , have special funding channels and can get cheap funding costs. Under the policy of targeted reserve requirement ratio cuts, the price of funds they receive is far lower than the current market price. In an era when private enterprises are the main investment force, due to the difficulty in obtaining bank loans, most private enterprises need to obtain project financing through financial leasing, with interest costs as high as 8% or even more.

Tianfeng Securities made a calculation. Taking Shandong Province as an example, it is expected that the initial investment cost of full online user projects in 2022 will be 3.07 yuan/w. If the loan ratio is 70%, if the loan interest rate drops from 8.15% to 4.15%, will be the internal ROI of will be increased from 8.79% to 12.54%, and investment return period will be shortened from 16 years to within 9 years.

Under the county-wide policy, central enterprises and state-owned enterprises have advanced directly. As of 2021, the number of counties signed by State Power Investment Corporation has reached 100, and the number of contracts signed by Datang , State Energy Group, Huadian, Huaneng , and State Grid are 51, 33, 25, 20 and 19 in turn.

Although central enterprises have strong financial strength and high credibility, they lack relevant practical experience, which is what private enterprises are good at. It is also because of this that after state-owned enterprises enter the market, the project can be packaged and handed over to private enterprises to develop .

The development models of household distributed photovoltaics and industrial and commercial distributed photovoltaics are similar.

In the field of household distributed photovoltaics, CICC pointed out that from the perspective of profit distribution, it can be roughly divided into two types, namely the direct sales system (self-sponsored by farmers) and the cooperative development model.

• The first type is a self-owned power station for farmers, which directly sells the entire system to farmers. All the income within the life cycle of the power station is owned by farmers. This type of direct sales model can be divided into three models: full-payment, loans, and financial leasing; the second type of
• is a cooperative development model. The income generated by the power station is distributed between farmers and the power station holder. The usually form is that the power station holder uses the system and farmers take the roof. The power station holder pays the farmers at a rent of 30-60 yuan per piece of component every year. The power generation income belongs to the power station holder. Farmers are not responsible for the purchase, installation, operation and maintenance of the power station, etc. The above are all carried out by the power station holder.

cooperative development and development model can be subdivided into three types, among which packaging and sales and agency development have gradually become mainstream models.

• Packaging and Sales Model: Private enterprises, as the main body of co-construction of power stations with farmers, carry out project construction and development, and then sell the power station to state-owned enterprises that are more suitable for holding and operating power stations (state-owned enterprises will become the main body of co-construction of power stations) to earn some price difference. This type of model can improve the turnover efficiency of private enterprises and give full play to the advantages of flexibility.
• generation development model: In this process, private enterprises are usually responsible for negotiating (development), power station construction, installation, and grid connection with farmers, but the main body of co-constructing power stations with farmers is a state-owned enterprise from the beginning of project development. Private enterprises only participate in the project development and construction process and are not the main body of cooperation. Private enterprises earn project development and construction costs from it.

The business model of industrial and commercial power stations is similar to that of household use, and is divided into two categories: owners own power stations and power station operators own power stations. Unlike the "full access to the Internet" for household use, most of the newly added industrial and commercial photovoltaics are "spontaneously used and self-used, and the return rate of return can be greater.

Private listed companies racing

Private listed companies, especially listed companies in the photovoltaic industry, have joined this army, and this is not the first time distributed photovoltaics has "carnival". The last "spring" appeared around 2017.

At that time, in the distributed photovoltaic market, former China's richest man, Li Hejun, , and Hanergy, which was backdoor listing, were the first companies to "take the lead". The "GCL Group" with three listed companies also issued a notice at the end of September 2016 to mobilize all employees to use the holidays to carry out distributed business development for all employees.

Subsequently, Tenhe Solar (688599.SH) founded "Tenhe Fujia", and Ates Solar (CSIQ.O) established the "Sun Garden" brand, and has entered the distributed photovoltaics one after another. But after singing all the way, chaos arose. In 2018, the "531" policy took a heavy blow, and this market fell to the bottom due to policy rectification.

The policy in 2021 has taken a sharp turn, causing great waves. According to information released by the National Energy Administration, the national photovoltaic installed capacity will be 55GW in 2021, the highest in history. Among them, photovoltaic power stations are 25.6 GW; distributed photovoltaic power stations account for about 55% of all new photovoltaic power generation installed capacity, surpassing centralized power stations for the first time in history. The first quarter of 2022 achieved another good results.

From silicon wafer , batteries, photovoltaic auxiliary materials, photovoltaic modules, inverter to photovoltaic power stations, many listed companies have made efforts again in this narrow and long photovoltaic industry chain.

Longi Green Energy Technology Co., Ltd. (601012.SH) directly "bind" Sinopec . As of December 2021, Sinopec and Longi New Energy have signed 147 gas station distributed photovoltaic projects, distributed in Shaanxi, Hubei, Anhui and Guangdong. Many listed companies such as Zhongli Group (002309.SZ), Yijing Optoelectronics (600537.SH), and Tori New Energy (002218.SZ) in the

photovoltaic cell link are also involved.

• Zhongli Group says it develops, invests in and operates distributed photovoltaic business on its own, and after completion, it will be packaged and sold to central, state-owned enterprises or other acquirers. The company can hold some high-quality power stations.

  Central enterprises and state-owned enterprises lead

  "The business is not easy to do now," Liu Hu, who is engaged in distributed photovoltaic power generation business, told Interface News, "We cannot compare to central enterprises and state-owned enterprises."

  has always been a wait-and-see attitude in this field, due to the trivial projects, small quantity and difficult management, private enterprises have been deeply rooted in this area. However, since the second half of 2021, the policies promoted by the whole county have ignited the distributed photovoltaic market.

  In my country, distributed photovoltaic power stations can be divided into rooftop distributed photovoltaic power stations and photovoltaic power stations with no more than 20 megawatts of fishing light complementarity, agricultural light complementarity and forest light complementarity. Roof distributed photovoltaic power stations mainly include industrial roof distributed photovoltaic power stations, commercial roof distributed photovoltaic power stations and household roof distributed photovoltaic power stations. Photovoltaic power stations such as fishing and light complementarity, agricultural and light complementarity, etc. are photovoltaic power stations built on the water surface of fish ponds, agricultural greenhouses, and forest land .

  

  In late June 2021, the National Energy Administration Comprehensive Department issued a notice on submitting the pilot plan for roof distributed photovoltaic development in the entire county (city, district). The curtain of photovoltaic county-wide promotion has officially opened. Just 4 days after the above notice was issued, State Power Investment Corporation reached a cooperation intention with five counties and cities. One month later, another central energy enterprise, National Energy Group , will issue a notice: By the end of 2022, the National Energy Group system development (leading, participating and signing development agreements) will have no less than 500 counties (cities, districts). On September 14, 2021, the National Energy Administration of officially confirmed the pilot list for 676 whole counties to promote.

  For a time, the five major power central enterprises: National Energy Investment Group , China Huadian Group , China Huadian Group , China Datang Group , National Electric Power Investment Group , and the "six small wealthy families" Guotou Power , China General Nuclear Corporation, Three Gorges Group , China Resources Power , China Energy Conservation (Solar Energy), and China Nuclear Corporation have entered the market one after another.

  State-owned investment platforms represented by Zhejiang Energy, Guangdong Energy Group, , Guangzhou Development, Beijing Energy , Shenzhen Energy Network, Yunnan Energy Investment , Water Energy Network, Shenneng , Jinneng, Wujiang Energy Network, etc. are not willing to lag behind. Energy giants such as

  , , Sinopec, , and Total have also joined the melee of distributed photovoltaic business.

  Whether it is a central enterprise or a listed company under local state-owned enterprises, they are rich and powerful, and they have the right time and place in this competition.

  The market value of related listed companies under China Power Group exceeds 800 billion yuan, and the market value of two listed companies under Sanxia Group is also close to 680 billion yuan. Among local state-owned enterprises, Guangzhou Development and Zhejiang New Energy are also very strong.

  

  Liu Hu told Interface News that central enterprises such as , five major power groups, , have special funding channels and can get cheap funding costs. Under the policy of targeted reserve requirement ratio cuts, the price of funds they receive is far lower than the current market price. In an era when private enterprises are the main investment force, due to the difficulty in obtaining bank loans, most private enterprises need to obtain project financing through financial leasing, with interest costs as high as 8% or even more.

  Tianfeng Securities made a calculation. Taking Shandong Province as an example, it is expected that the initial investment cost of full online user projects in 2022 will be 3.07 yuan/w. If the loan ratio is 70%, if the loan interest rate drops from 8.15% to 4.15%, will be the internal ROI of will be increased from 8.79% to 12.54%, and investment return period will be shortened from 16 years to within 9 years.

  

  Under the county-wide policy, central enterprises and state-owned enterprises have advanced directly. As of 2021, the number of counties signed by State Power Investment Corporation has reached 100, and the number of contracts signed by Datang , State Energy Group, Huadian, Huaneng , and State Grid are 51, 33, 25, 20 and 19 in turn.

  

  Although central enterprises have strong financial strength and high credibility, they lack relevant practical experience, which is what private enterprises are good at. It is also because of this that after state-owned enterprises enter the market, the project can be packaged and handed over to private enterprises to develop .

  The development models of household distributed photovoltaics and industrial and commercial distributed photovoltaics are similar.

  In the field of household distributed photovoltaics, CICC pointed out that from the perspective of profit distribution, it can be roughly divided into two types, namely the direct sales system (self-sponsored by farmers) and the cooperative development model.

  • The first type is a self-owned power station for farmers, which directly sells the entire system to farmers. All the income within the life cycle of the power station is owned by farmers. This type of direct sales model can be divided into three models: full-payment, loans, and financial leasing; the second type of
  • is a cooperative development model. The income generated by the power station is distributed between farmers and the power station holder. The usually form is that the power station holder uses the system and farmers take the roof. The power station holder pays the farmers at a rent of 30-60 yuan per piece of component every year. The power generation income belongs to the power station holder. Farmers are not responsible for the purchase, installation, operation and maintenance of the power station, etc. The above are all carried out by the power station holder.

  

  cooperative development and development model can be subdivided into three types, among which packaging and sales and agency development have gradually become mainstream models.

  • Packaging and Sales Model: Private enterprises, as the main body of co-construction of power stations with farmers, carry out project construction and development, and then sell the power station to state-owned enterprises that are more suitable for holding and operating power stations (state-owned enterprises will become the main body of co-construction of power stations) to earn some price difference. This type of model can improve the turnover efficiency of private enterprises and give full play to the advantages of flexibility.
  • generation development model: In this process, private enterprises are usually responsible for negotiating (development), power station construction, installation, and grid connection with farmers, but the main body of co-constructing power stations with farmers is a state-owned enterprise from the beginning of project development. Private enterprises only participate in the project development and construction process and are not the main body of cooperation. Private enterprises earn project development and construction costs from it.

  The business model of industrial and commercial power stations is similar to that of household use, and is divided into two categories: owners own power stations and power station operators own power stations. Unlike the "full access to the Internet" for household use, most of the newly added industrial and commercial photovoltaics are "spontaneously used and self-used, and the return rate of return can be greater.

  

  Private listed companies racing

  Private listed companies, especially listed companies in the photovoltaic industry, have joined this army, and this is not the first time distributed photovoltaics has "carnival". The last "spring" appeared around 2017.

  At that time, in the distributed photovoltaic market, former China's richest man, Li Hejun, , and Hanergy, which was backdoor listing, were the first companies to "take the lead". The "GCL Group" with three listed companies also issued a notice at the end of September 2016 to mobilize all employees to use the holidays to carry out distributed business development for all employees.

  Subsequently, Tenhe Solar (688599.SH) founded "Tenhe Fujia", and Ates Solar (CSIQ.O) established the "Sun Garden" brand, and has entered the distributed photovoltaics one after another. But after singing all the way, chaos arose. In 2018, the "531" policy took a heavy blow, and this market fell to the bottom due to policy rectification.

  The policy in 2021 has taken a sharp turn, causing great waves. According to information released by the National Energy Administration, the national photovoltaic installed capacity will be 55GW in 2021, the highest in history. Among them, photovoltaic power stations are 25.6 GW; distributed photovoltaic power stations account for about 55% of all new photovoltaic power generation installed capacity, surpassing centralized power stations for the first time in history. The first quarter of 2022 achieved another good results.

  From silicon wafer , batteries, photovoltaic auxiliary materials, photovoltaic modules, inverter to photovoltaic power stations, many listed companies have made efforts again in this narrow and long photovoltaic industry chain.

  

  Longi Green Energy Technology Co., Ltd. (601012.SH) directly "bind" Sinopec . As of December 2021, Sinopec and Longi New Energy have signed 147 gas station distributed photovoltaic projects, distributed in Shaanxi, Hubei, Anhui and Guangdong. Many listed companies such as Zhongli Group (002309.SZ), Yijing Optoelectronics (600537.SH), and Tori New Energy (002218.SZ) in the

  photovoltaic cell link are also involved.

  • Zhongli Group says it develops, invests in and operates distributed photovoltaic business on its own, and after completion, it will be packaged and sold to central, state-owned enterprises or other acquirers. The company can hold some high-quality power stations.
  • Tuori New Energy said on April 21 that it will invest 500 million yuan to build the Dongyi New Energy 100MW agricultural and optical complementary power station project, and at the same time, it will accelerate the 300MW agricultural (fishing) optical complementary power station project in Hubei Tuori New Energy, and promote the construction of photovoltaic power station projects such as 100MW of Shaanxi and distributed county-wide photovoltaic power station projects with central state-owned enterprises.
  • Bijing Optoelectronics stated on the investor interaction platform on March 29 that the total installed capacity of distributed power stations currently in operation is 30MW. Many companies have also entered the distributed photovoltaic auxiliary materials industry in

  .

  • Qingyuan Co., Ltd. (603628.SH) is undergoing a shift from centralized photovoltaics to distributed. One of the company's business is the development, construction and operation and maintenance of photovoltaic power plants. With the advent of the era of photovoltaic parity, in order to reduce financing risks, since mid-2021, Qingyuan Co., Ltd. stated that it will no longer aggressively expand the scale of self-held power plants, and plans to continuously optimize power plant assets and turn to investment in industrial and commercial roofs and household photovoltaic power plants. Many companies have already taken a fancy to distributed photovoltaic business in the

  photovoltaic module link, and some giants have already gained the first-mover advantage in this track.

  • Tenhe Light Energy has occupied a place in the household track through the "Tenhe Fujia" brand.
  • photovoltaic module giant Jinko Energy (688223.SH) directly turned its attention overseas. It has stopped developing new overseas photovoltaic power plant projects since the third quarter of 2017, but in December 2021, Jinko Energy Holdings announced that its subsidiary Jinko Energy Co., Ltd. has reached a cooperation in 2022 with AldoSolar, a large photovoltaic power generation solution dealer in Brazil, which accounts for about 31% of the Brazilian market. The two parties signed the overseas distributed power generation distribution agreement with the largest installed capacity of Jinko Energy to date.

  • Oriental Risheng (300118.SZ) stated on March 9, 2022 that the company actively deploys domestic distributed photovoltaic business and has achieved a small amount of sales. Most listed companies in the

  photovoltaic inverter link expand their household customers through financial leasing.

  • Goodway (688390.SH) promotes the expansion of distributed photovoltaic business by guaranteeing financing for photovoltaic users . The company plans to sign a cooperation agreement with banks, financing leasing company and other financial institutions, and financial institutions will provide financing services for home users, enterprises and institutions to purchase photovoltaic power generation products and services. Financing uses the income and subsidy income generated from photovoltaic power station power generation as the main source of repayment. The Gudewei guarantee amount has increased from 35 million yuan in April 2021 to 1.035 billion yuan at the end of 2021.
  • Sungrow Power Supply (300274.SZ) 2021 distributed business focuses on the two models of "big customer development + channel expansion" and has reached project cooperation with customers such as CNPC, Sinopec, NIO , Mengniu , Danone and other customers. Under the "Home Sunshine" cooperation and construction business model, the annual installed capacity of Sunshine's home photovoltaics in 2021 increased by more than 500% year-on-year. From 2018 to the end of 2021, the guarantee amount of the company's home photovoltaic product users and industrial and commercial distributed project owners reached 670 million yuan.

  As the last stop in the photovoltaic industry chain, the role played by the photovoltaic power generation link is more important in distributed business. There are at least 13 photovoltaic power generation listed companies on A shares . Except for solar energy (000591.SZ) and Zhejiang New Energy (600032.SH) which are affiliated to the State-owned Assets Supervision and Administration Commission and Zhejiang Provincial State-owned Assets Supervision and Administration Commission , the rest are private enterprises.

  

  Take three old photovoltaic power manufacturers Linyang Energy (601222.SH), Beijing Yuntong (601908.SH) and Zhaoxin Co., Ltd. (002256.SZ) as examples. Most listed companies in the photovoltaic power generation process develop and build through EPC (general contracting of engineering), BT (construction-transfer) and BOO (self-built and self-supporting), and carry out photovoltaic and wind power station operation business.

  • For example, Linyang Energy, with a total market value of over 14 billion yuan. With the "development + EPC + operation and maintenance" model, we will cooperate with central and state-owned enterprises such as CNN, Huaneng, Shenneng, Sanxia, ​​China Power Construction, and China Energy Construction at home and abroad. An announcement was issued on April 13, 2022, that the company transferred 100% of its equity in five subsidiaries to Wuhan Luxi, with a total installed capacity of 154MW and an equity transfer consideration of approximately 365 million yuan.The power stations to be transferred this time are all located in Suzhou City, Anhui Province. The transaction involves a variety of power station types, including roof distributed, agricultural and optical complementary, and ground distributed photovoltaic power stations.
  • Jinko Technology (601778.SH), with a total market value of nearly 15 billion yuan, directly "stripped" local governments. In mid-November 2021, Jinko Technology said that the company and its wholly-owned subsidiary Jingping Power signed a cooperation framework agreement with many governments and enterprises in promoting the pilot work of roof distributed photovoltaic development in the whole county to jointly promote the development of roof distributed photovoltaic power station projects. It is expected that the total installed capacity of the project construction of distributed photovoltaic power station projects will be about 450 megawatts. During the whole county promotion in 2021, Jinko Technology has signed contracts with 40 counties. Xinneng Technology (603105.SH), which was launched in July 2018, mainly focuses on industrial and commercial division cloth photovoltaic business.

  Except for listed companies in the photovoltaic industry, cross-border entry into distributed photovoltaics is no longer a new thing.

  • electrical machinery and equipment manufacturing industry, Zhengtai Electrical Appliances (601877.SH), which has experience in expanding the channel of low-voltage electrical appliances, has become one of the leaders of household distributed photovoltaics.
  • color TV industry has experience in expanding home appliance channels Skyworth Group (00751.HK), which has experience in expanding home appliance channels, takes advantage of this to grow rapidly.

  The power stations to be transferred this time are all located in Suzhou City, Anhui Province. The transaction involves a variety of power station types, including roof distributed, agricultural and optical complementary, and ground distributed photovoltaic power stations.
• Jinko Technology (601778.SH), with a total market value of nearly 15 billion yuan, directly "stripped" local governments. In mid-November 2021, Jinko Technology said that the company and its wholly-owned subsidiary Jingping Power signed a cooperation framework agreement with many governments and enterprises in promoting the pilot work of roof distributed photovoltaic development in the whole county to jointly promote the development of roof distributed photovoltaic power station projects. It is expected that the total installed capacity of the project construction of distributed photovoltaic power station projects will be about 450 megawatts. During the whole county promotion in 2021, Jinko Technology has signed contracts with 40 counties. Xinneng Technology (603105.SH), which was launched in July 2018, mainly focuses on industrial and commercial division cloth photovoltaic business.

Except for listed companies in the photovoltaic industry, cross-border entry into distributed photovoltaics is no longer a new thing.

• electrical machinery and equipment manufacturing industry, Zhengtai Electrical Appliances (601877.SH), which has experience in expanding the channel of low-voltage electrical appliances, has become one of the leaders of household distributed photovoltaics.
• color TV industry has experience in expanding home appliance channels Skyworth Group (00751.HK), which has experience in expanding home appliance channels, takes advantage of this to grow rapidly.