Solar PV Onsite Energy No

Installing solar onsite via a PPA requires zero upfront capital expenditure and—due to the low price of solar in China—onsite installations offer significant opportunity for energy cost savings and progress on environmental performance.

However, many on-site systems simply can't scale large enough to cover full consumption needs, so they typically only cover a percentage of the facility's needs, relying on traditional electricity to cover the deficit. They also don't work everywhere as solar and wind resource varies from location to location, as well as incentives and rebates.

Onsite solar is the primary opportunity for corporates to focus on in China. A steep drop in costs has resulted in greatly improved returns, making PPAs for onsite generation an attractive option for C&Is. In addition, the Chinese government offers a subsidy for onsite solar generation of ¥.37/kWh (about $.06/kWh).

On-site systems offer a better return on investment because financial savings are across the entire electricity supply chain – costs associated with energy generation, transmission and distribution, market volatility, and environmental costs. On-site systems offset these costs as you're generating your own electricity.

They also don't work everywhere as solar and wind resource varies from location to location, as well as incentives and rebates. Large energy consumers are increasingly looking to procure their renewable energy from off-site projects.

First, let's define each. On-site renewables, aka direct, are “behind the meter” systems at a specific location, providing energy on-demand or via on-site storage (i.e., batteries). These are typically financed, owned, and managed by the company themselves.