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Social Benefits of PV Power Plants

Nowadays, as environmental issues become more and more serious, people have begun to understand the importance of environment protection. Using green and renewable energy resources, PV power plants generate essential and widespread social benefits.


First, PV power plants use renewable resource, and help to diversify energy supply sources. With the increase of oil and coal production, non-renewable energy reserves are becoming less and less and will eventually dry up. The development of New energy sources using are of strategic importance. On February 28, 2005, China passed the People's Republic of China Renewable Energy Law, which clearly stipulates that the government encourages and supports grid-tied power generation using non-fossil energy sources, such as wind, solar, water, biologic, and oceanic energy sources. On November 11, 2014, Chinese Chairman Xi Jinping said that China will peak CO2 emission around 2030 (the earlier the better), and will use up to 20% of primary energy which is not derived from fossil fuel. The utilization of solar energy meets the national policies on environment protection and energy conservation, and helps to effectively reduce regular energy consumption (especial coal), diversify energy sources, and protect the environment.


Secondly, PV power generation can reduce CO2 emission, mitigate the greenhouse effect, and protect the environment. As described in several official publications, generating electricity of 1 kWh using thermal energy will consume an average of 0.35 kg of standard coal, and burning 1 ton of standard coal will emit 2.6 tons of CO2. Building a 30 MWp PV power plant will produce 45 million kWh of electricity, reduce coal consumption by 15,750 tons, and reduce CO2 emission by 40,950 tons in the first year. In its entire life cycle, the PV power plant can reduce coal consumption by 376,417.5 tons and CO2 emission by 978,685.5 tons. In short, the PV power plants on energy conservation and reducing CO2 emission, is very significant for companies as well as for countries.


Thirdly, PV power plants increase the usage ratio and value of land. The Tonking solar-agricultural dual-axis tracking PV power plants can be built on rooftops, water, or waste land (such as gobi and desert) to increase the usage and value of land. The Fenglin 30MWp solar-agricultural tracking PV power plant is the largest one of its type in the world in terms of stand-alone capacity.


In addition, PV power plant construction can promote the local economic growth and employment. Industries that can benefit from PV power plant construction include building materials, transportation, and the tertiary industry. After the power plant starts producing electricity, the power plant itself can also drive local economic growth.


Lastly, the PV industry makes the world cleaner and safer, and provides abundant energy supplies.


Solar energy is inexhaustible, clean, and renewable, and has unique advantages and great potential. Making full use of the solar energy not only conserves energy, reduces CO2 emission, and promotes local economic growth, but also makes global energy supply sustainable.


Economic Benefits of PV Power Plants
1. ROIs of Different Installation Mode
PV power plants are classified as fixed, horizontal single-axis tracking, tilted single-axis tracking, and dual-axis tracking power plants. Table 1.1 describes the return on investment (ROI) of each type of power plant.

Table 1.1 ROIs of different types of PV power plants

Note: The following table assumes that the investment on a fixed PV power plant is 7 RMB/W.

No.Tracking ModeInvestment (RMB/W)Investment Percentage of Tracking System (%)Investment Increase Compared with Fixed Installation (%)ROI Increase Compared with Fixed Installation (%)
Support Tracking SystemOther Equipment InstallationTotal
Equipment InvestmentInfrastructure InvestmentInstallation CostSum
1No tracking (fixed) %00
2Horizontal single-axis tracking1.
3Tilted single-axis tracking1.
4Tonking dual-axis tracking1.
Based on table 1.1, we can conclude that the Dual-axis Tracking PV power plant takes the lead in terms of cost effectiveness, followed by tilted single-axis tracking, horizontal single-axis tracking, and fixed PV power plants. The Tonking dual-axis tracking PV power plant greatly reduces the payback period, and has unique advantages.
2. ROIs of Different Business Models
The Tonking group specializes in technical innovation and financing, and has an expert installation team. To draw upon each others' strength and promote win-win, the group offers the following business models to cooperate with members involved in the industry:

Table 2.1 Responsibility division for different business models

No.ModelPreparationDesignCapitalConstructionOperationMaintenanceElectricity RevenuePlant OwnerRemarks
3BOTOwnerOwnerTonkingTonkingTonkingTonkingTonking+OwnerTonking+OwnerAfter the contract expires, the plant is transferred to the owner.
4EMCOwnerOwnerOwnerTonkingOwnerOwnerTonking+OwnerOwnerThis model applies to power plant renovation.
5SolarcityOwnerFlexible combination of a variety of cooperation modes 
6Multiple equity cooperation modesOwnerFlexible combination of a variety of cooperation modes 

1. EPC Model

In this model, the owner applies for the grid connection permission and land, and ensures that the pre-installation preparations are ready and that grid connection conditions are met. The Tonking group designs the power plant; builds civil work construction; purchases, installs, and commissions the equipment; performs the pilot operation; and takes responsibility for the project quality, safety, project period, and cost. The power plant will be transferred to the owner as a whole for follow-up operation.
Advantage: As the general contractor, the Tonking group can leverage its dual-axis tracking technology and other supportive products to greatly improve the electricity yield. A 15% increase on investment boost the higher electricity yield by 25%–30%.

2. BT Model

In this model, the owner applies for the grid connection permission and land, and ensures that the pre-installation preparations are ready and that grid connection conditions are met. The Tonking group takes the responsibility for the design, financing, purchase, and construction, and transfers the power plant to the owner after acceptance. The owner pays back the total investment and a reasonable return to the Tonking group.
Advantage: The Tonking group provides financing support to ensure prompt project delivery.

3、BOT Model

This an enhanced version of the BT model. Compared with the BT model, the BOT model allows the owner to sign an entrusted operation contract with the Tonking group.
Advantage: The Tonking group provides both financing support and modernized operation management.

4. EMC Model

This model applies to the renovation of an existing power plant. Replacing a fixed PV system with the Tonking dual-axis tracking system can significantly increase the electricity yield. The Tonking group pays for the renovation cost, and shares the revenue increase with the power plant owner.
Economic benefit analysis: Taking a 10 MW ground PV power station with a 5-year operation period as an example, the total electricity yield is 11 million kWh before the renovation. After being renovated with the Tonking dual-axis tracking system at a cost of 1–1.5 RMB/W (total cost of 10–15 million RMB), the electricity yield increases by 25–30% (3.3 million kWh) to 14.3 million kWh per year. The electricity yield increase means significant revenue increase, and guarantees an appropriate payback period for the renovation investment.

5. Solarcity Model

Leveraging its strong financing capability, Tonking group provides financial services such as PPP to owners.

6. Multiple Equity Cooperation Modes

Tonking group also cooperates with owners in various equity cooperation modes to build joint venture PV power plants and achieve win-win for both parties.


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