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What are the risks of early development of photovoltaic power plants?
under the background of the rapid development of new energy in the world, the construction of photovoltaic power plants is not only the most stable and considerable fixed asset investment in the world, but also plays an irreplaceable key role in promoting the upgrading and application popularization of the whole new energy industry as the core link of series upstream manufacturing and terminal application. From the perspective of professional investors, the smooth grid connection and normal power generation of photovoltaic power plants mean the basic formation of asset value and IRR return model. However, from the perspective of PV module manufacturers, it is necessary to extend the investment risk to the back-end loan withdrawal or overall sale. For component manufacturers, the cash flow of power station assets transaction is the key to the success or failure of the whole construction. There are some risks in the development of photovoltaic power plants.

1. Risks in project site selection

1. Unreal land area and inaccurate topography

When investigating a land situation, especially in mountainous areas, it is recommended to use GPS, level and other equipment for testing, because often relying on visual inspection or referring to plane maps will lead to the fact that the effective area, slope and surface conditions of the plot are inconsistent with the actual situation, and there are large errors.

2. Risk of land nature

As for the nature of the site, so far, in principle, we have chosen unused land, construction land, permitted construction land and conditional construction area. So far, it is not clear whether other properties of land can be used, such as woodland and grassland, and whether the rules can be adjusted or not. In recent years, the state introduced a certain subsidy policy per mu for cultivated land and general forest land, and the local government changed all the unused non-cultivated land and non-forest land into cultivated land or general cultivated land, resulting in little unused land now.

for the same piece of land, different government departments may have different plans, which will lead to the inconsistent nature of the land for project investigation. It is necessary to ensure that all departments are unused land before the next progress can be made, which requires a detailed understanding of all departments under the jurisdiction of land.

3. About the risk of land lease

Which department should I sign a land lease agreement with in the face of two kinds of ownership land: state-owned land and collective land? We suggest signing land lease contracts with local counties, township governments and village committees, and try not to sign contracts with local people to avoid unnecessary troubles in the later period. Whether there are other better leasing methods is worth exploring.

4. Land investment cost

Limited by land and photovoltaic resources, ground photovoltaic power stations are often planned in sites with landforms such as beaches, hills, Gobi and deserts. The ground photovoltaic power stations built in these sites may have high investment costs because of high groundwater level, deep bearing stratum and large terrain fluctuation. In the early stage of the project investigation, a comprehensive cost budget should be made.

5. About the risk of land rent and payment method

In the process of negotiating the project with the local government, the government mainly considers issues such as land price, tax revenue, how many jobs it will bring to the local area, etc. In order to win more profits, the land price is guided to be 2-3 yuan per mu per year. How to distinguish the mountainous areas peacefully, and how much can the mountainous areas be given at most? What's the maximum amount of flat land? So far, there is no guidance price, and the error of the investment model currently used in the industry remains to be verified.

photovoltaic projects enjoy a three-year three-half tax policy and a 17% VAT deduction. The local government can't enjoy the tax for the first five years, so the government requires us to pay part of the tax in advance, and then return it after reaching certain conditions. There are risks such as capital possession and return. It is debatable whether the land lease fee should be paid annually, once every three or five years, or once, which is safer for the capital flow of enterprises. For enterprises, these are all risks in project development.

second, the problem of grid connection

as a clean new energy, solar photovoltaic power generation will eventually be transmitted through the national grid if it is to enter enterprises or families. Ground photovoltaic power stations are often planned in sites with landforms such as beaches, hills, Gobi, deserts, etc., which makes the information of substation distance, capacity, standby interval, whether it can expand the interval and whether it can be T-connected very important.

Third, the degree of environmental protection is high

According to the distribution characteristics of photovoltaic resources in China, areas rich in photovoltaic resources are often ecologically fragile areas, so the construction of photovoltaic power plants must pay attention to ecological protection. Regardless of the terrain conditions and the original ecological environment, blindly applying the traditional civil construction methods will lead to vegetation destruction, soil erosion, construction dust, waste slurry wastewater and other problems. Especially in the western region with fragile ecological environment, the construction of some photovoltaic power plants has caused bad consequences: grassland degradation, semi-desertification of land and desert, sharp decline of biodiversity, regional soil erosion, frequent secondary geological disasters and so on, which completely violates the purpose of "green environmental protection" of photovoltaic industry.

In addition, the photovoltaic bracket foundation is the largest solid waste after the service period of photovoltaic power station expires, and there is no effective recycling measures. The environmental pollution of these solid wastes is essentially a waste and occupation of the existing land resources in China, which reduces and limits the reuse of land resources. If the ecological environment is destroyed because of the construction of photovoltaic projects, it is contrary to the good wish of developing green energy and realizing sustainable development.