Can the incentives polices promote the diffusion of distributed photovoltaic power in China?

Government incentive policies play an important role in the promotion of distributed photovoltaic power. However, which policy is more effective for the diffusion of distributed photovoltaic power? This is a question that needs to be answered. Based on this, we combined the two-factor learning curve and system dynamics model to study the dynamic diffusion process of China's distributed photovoltaic power (DSP). The results show that (1) the coefficients of learning by doing and learning by researching for DSP are 0.0435 and 0.2971 respectively. This indicates that technological innovation caused by R&D expenditures in the DSP is the driving force for cost reduction. (2) Both demand-pull and technology-push policies contribute to the diffusion of DSP; (3) the effect of FIT policy on the diffusion of distributed photovoltaic technology is more significant than that of R&D policy; and the reduction of production cost of photovoltaic power industry by R&D policy is more significant than FIT policy.