Why land prices matter for China's solar power future

What is it about?

Solar power is expanding rapidly in China, but the best way to build it is not determined by sunlight and panel costs alone. This study examines how land costs affect the choice between two common utility-scale solar photovoltaic designs: fixed-tilt systems, where panels stay at one angle, and single-axis tracking systems, where panels move during the day to capture more sunlight. Using a spatially detailed model for China, we compare these technologies in terms of electricity generation, land use, costs, material demand, and policy resilience. We find that tracking systems can generate more electricity and often look more cost-effective from a purely technical perspective. However, once real-world land costs are included, the advantage can shrink or even disappear. Land costs raise the levelized cost of electricity by about 20% for tracking systems, compared with about 8% for fixed-tilt systems.

Featured Image

Photo by Andreas Gücklhorn on Unsplash

Photo by Andreas Gücklhorn on Unsplash

Why is it important?

China's solar choices will shape global decarbonization, clean-energy supply chains, land use, and demand for critical materials. Our results show that land policy and land pricing can strongly influence which solar technologies are deployed, not just how much solar capacity is installed. This creates an important trade-off. Fixed-tilt systems can use land more efficiently and become cheaper when land is expensive, but they may require 18% to 26% more panels to deliver the same electricity, increasing material demand. Tracking systems can reduce the amount of installed capacity needed, but they use more land and are more exposed to land-related costs.

Perspectives