Economic comparison of distributed grid-connected photovoltaic generation with different business models

Distributed grid-connected photovoltaic generation as one kind of clean energy and developing PV industry is favorable. The distributed grid-connected photovoltaic generation in China mainly adapts the two business models including "Feed-in Tariffs" and "Self-Consumption". Currently, the national energy bureau reduces the standard feed-in tariffs, which brings certain influence on the profits of distributed grid-connected photovoltaic generation. This paper firstly adopted qualitative analysis to compare two business models from the three parties of interest including enterprise, grid company and users. Then, with the concrete example, for the economic benefit of business model, the paper used the index of dynamic evaluation approach including the net present value (NPV) and the internal rate of return (IRR) to evaluate it. It's concluded that the decline of government subsidies was even more unfavorable for the investment with "Feed-in Tariffs" model. And the higher the electricity consumption price is, the more advantage the "Self-Consumption" model has. Thus, for the investment in distributed grid-connected photovoltaic generation, it should comprehensively consider the local policies, local electricity price, rent, etc. to adjust measures to local conditions.