Research on the Cost of Distributed Photovoltaic Plant of China Based on Whole Life Cycle Perspective

Because of the continuous reduction of subsidies for distributed photovoltaic power generation and the future participation in bidding, the cost per kilowatt hour of the electricity will become an important economic indicator for investment decision-making and bidding strategies. In this paper, a cost-benefit model of distributed photovoltaic power plant (DPPP) has been proposed based on its own characteristics. This paper further presents an investment decision analysis method about the cost of electricity per kilowatt hour through analyzing several parameters, such as the whole life cycle of installed costs, the annually effective utilization hours, the loan interest rates, the feed-in tariff, the income tax rate, and the subsidized electricity prices of the DPPP. The fruitful work that related to various economic indicators results in a solution of effective analysis of the DPPP investment decisions. Furthermore, this paper provides the reference for the cost accounting of the future photovoltaic power generation bidding on the grid.