LANGUAGE
Español
English
On June 16, the Jiangxi Provincial Development and Reform Commission launched a public consultation on the Revised Rules for the Implementation of Bidding for Mechanism Electricity Prices of Incremental New Energy Projects in Jiangxi Province.
The revised document stipulates clearly that industrial and commercial distributed photovoltaic projects adopting the self-consumption plus surplus electricity grid-feed model commissioned on or after January 1, 2027, will no longer be covered by the mechanism electricity price policy.
What is a mechanism electricity price? Simply put, it acts as a guaranteed minimum selling price for electricity generated by new energy projects. When the market electricity price falls below this benchmark, the power grid will make up the price difference, serving as a safeguard for project revenue. After 2027, this revenue safety net will no longer be available for certain industrial and commercial distributed photovoltaic projects.
Jiangxi is not the first provincial region to roll out such a policy.
Shandong formally enforced the same exclusion clause in August 2025, followed by Henan and Guangxi, which introduced relevant policies by the end of 2025. Jiangxi is the fourth province to explicitly exclude incremental industrial and commercial distributed photovoltaic projects from the scope of mechanism electricity prices. The first three provinces set their policy cut-off dates around June 1, 2025, while Jiangxi has postponed its threshold to January 1, 2027 — a buffer period of one and a half years longer, offering the market more time for adjustment.
Another often-overlooked punitive clause is included in the revised rules: if a successfully bid project is delayed by more than six months, its bidding result will be invalidated, and the investor will be barred from participating in new energy project bidding in Jiangxi for three years. This penalty applies to the investor’s provincial-level business qualification rather than just a single project.
The revenue model for industrial and commercial distributed photovoltaics is set to shift from policy-based pricing to market-oriented pricing.
Without the floor protection of mechanism electricity prices, how should revenues from surplus grid-fed electricity be calculated? Can developers catch the policy deadline before the end of 2026? Once excluded from the policy scope, will project earnings be entirely exposed to market volatility, or are alternative viable business models available?
Based on the original consultation draft, the framework set out in National Document No. 136, cross-provincial policy comparisons and official statistics, Solarbe PV Network has conducted a clause-by-clause analysis of the consultation paper and compiled this in-depth research report, covering the following key contents:
