posted by System Administrator on 11/15/06

"Initial U.S.-China cooperation for rural electrification activities in China focused on the development of solar home system applications for western China. Generally, solar home systems in China for individual households start at 5 Watts and can be 150 W or larger. A typical solar home system in northwestern China consists of a 20-Wp crystalline silicon PV module, a charge controller, a 38-AH sealed lead-acid battery, two 8-W compact fluorescent lamps, and necessary wiring.

The retail price range of such systems is 1,800 to 2,400 RMB ($219 to $290 US), but the higher price systems are much higher quality and reliable. Many herdsmen and farmers can afford to buy these systems that provide light for children to read and study at night. Communication, via television and radio, is a prized addition and in some cases, a refrigerator and washing machine are purchased by more wealthy families.

The Gansu project is being implemented by the Solar Electric Light Fund (SELF) in Washington, D.C. and the Gansu Solar Electric Light Fund (GSELF) in Lanzhou, Gansu, and builds upon work previously conducted by these organizations. The objective of the project is to provide electricity to more than 600 remote homes and schools during the course of the project and to help to build an infrastructure for sustainable technology deployment. Technical assistance for capacity building includes: support for the development of a distribution network for sales and service, a comprehensive training program, and experimental financing of systems through cash and credit sales. As of the fall of 1998, 320 systems had been installed in the joint U.S.-China project and another 275 systems had been installed by GSELF with the support of the Gansu Provincial government. In addition, ten 53-Watt PV school systems using Solarex modules had been installed.

The lack of credit experience in rural China necessitates continued experimentation with installment credit terms to develop a functional credit system. The Gansu project is directed toward poor communities in rural Gansu, using limited subsidies that are being phased out during the course of the project. The province of Gansu has among the lowest annual income levels in all of China for remote farming communities. A revolving-fund account has been set up at the Lanzhou Branch of the China Construction Bank by SELF and GSELF to leverage the project by using customer receipts to purchase more systems.

The demonstration projects and infrastructure developed under this program are models for similar activities in other regions and government and private agencies throughout China. The State Council Office for Poverty Alleviation and Rural Development in Beijing is a key funding partner working closely with MOA. This Office has a primary responsibility for rural development projects in China and spends more than $1 billion (U.S.dollars) per year on rural infrastructure projects. The Gansu project is providing a mechanism for introducing the support of renewable energy technologies into the strategic planning activities.

A barrier to the widespread deployment of PV in China has been the variable quality of modules and balance-of-system components. Quality control was introduced through component testing and system monitoring during the Gansu project. NREL provided three PV modules previously calibrated under standard test conditions, for use as secondary testing standards in quality control protocols. Also, an extensive training program was included in the Gansu project to train users and installers and teach marketing techniques to village technicians and rural energy officers. The seminars taught basic principles of solar electricity as well as PV design, installation, and maintenance. As a result of the Gansu project, MOA is establishing a regional testing and training center in Lanzhou. MOA has rural energy offices in 1800 of the 2300 counties in China that could be involved in future projects."

The Solar Electric Light Fund also profiles this project. Excerpted from National Renewable Energy Laboratory NREL "Gansu Province Solar Home System Project"