By the end of 2023, China’s household distributed photovoltaic (DPV) capacity surpassed 100 GW, accounting for 25% of the nation’s photovoltaic generation. However, further growth faces challenges due to limited household consumption and grid bottlenecks. 

Our partner, Energy Foundation China supported an innovative solution launched by Shandong Jianzhu University to expand DPV capacity in China: The project focuses on “rural power banks,” which are decentralised energy storage systems integrated into the power distribution network. In pilot projects in Shandong’s Hanjiayu and Yicheng villages, 120-kilowatt modular distributed energy storage systems were installed,  increasing the local grid’s capacity by 30% and generating an additional $7,000 in annual electricity revenue for the local community.

Looking ahead, large-scale deployment of decentralised energy storage could accelerate sustainable DPV development, enhancing efficient energy use and delivering financial benefits to rural communities across China.