BIPV's "Second Revenue Curve": Green Certificates, Carbon Assets, and Financial Innovation

In the past, the economic viability of BIPV primarily relied on electricity cost savings from "self-consumption + selling surplus power back to the grid."
However, as mechanisms such as green finance, carbon markets, and green certificate trading gradually mature, BIPV projects are now unlocking a brand-new "second revenue curve."

This curve doesn’t rely on electricity prices but instead is based on the monetization potential of environmental assets. It enables BIPV to evolve from "energy-saving renovations" into "green asset operations," providing projects with greater financial viability for investment.

[First Curve: Traditional Revenue Model (Known)]

The direct economic returns of BIPV projects remain the core foundation:

Electricity cost savings: Generate and use your own power, avoiding peak-time rates (accounting for approximately 60%-70%)

Online Revenue: Surplus power sold back to the grid for electricity price benefits (accounting for approximately 20%-30%)

However, this model is heavily affected by electricity price fluctuations.
In regions where industrial and commercial electricity prices are relatively low or solar resources are average,
The investment payback period is relatively long (typically 8 to 10 years).

Image source: Mingyang Thin Film Technology

[Second Curve: Emerging Revenue Models (Growth Drivers)]

✅ 1. Green Certificate Trading: Monetizing "Green Electricity"

The National Renewable Energy Information Management Center issues "Green Electricity Certificates" (Green Certificates).

Every 1,000 degrees of green electricity ≈ 1 green certificate

Companies can earn additional revenue by selling green certificates.

Current situation:
In 2024, the average domestic green certificate price was approximately 150 yuan per certificate. A 1 MWp BIPV project generating 800,000 kWh of electricity annually can produce 800 green certificates, resulting in an additional annual income of about 120,000 yuan.
 

Trend:
As demand rises for green electricity purchases among multinational corporations, data centers, high-end manufacturing, and other sectors, green certificate prices are expected to continue climbing.

✅ 2. Carbon Asset Development: From "Emission Reduction" to "Trading"

BIPV projects can apply for CCER (China Certified Emission Reduction) or local carbon inclusivity programs.

Annual power generation of 1 million kWh ≈ reduced emissions of 800 tons of CO₂ ₂ ≈ 800 tons of carbon assets

Can be used for corporate carbon offsetting, collateralized financing, or market trading.

Financial Potential: If the national carbon market expands into the building sector in the future, BIPV carbon assets could become "green instruments" that are both collateralizable and eligible for financing.

✅ 3. Green Finance Support: Reducing Financing Costs

Multiple regions launch "Green Building Loans" and "Low-Carbon Technology Upgrade Special Loans."

Interest rates are reduced by 0.5% to 1%, and some projects may qualify for interest subsidies.

Improving ESG ratings helps companies secure lower financing costs.

Image source: Mingyang Thin Film Technology

[Model Innovation: The Financialization Attempt of BIPV]
 

1. Exploring "Photovoltaics + REITs"

Package multiple BIPV projects together to form a "distributed photovoltaic asset pool,"
Exploring the issuance of green infrastructure REITs,
Achieve asset securitization and enhance liquidity.

2. Community Photovoltaic Cooperative

Residents or property owners jointly fund the construction of the BIPV system,
Distributing power generation revenue and carbon asset income proportionally based on shares,
Enhance engagement and foster long-term holding intentions.

3. Carbon Performance Bet Agreement

The developer signs an agreement with the energy service provider:
If the BIPV system meets the annual power generation/emission reduction targets,
Share the profits for any amount exceeding the specified limit;
If the standards are not met, the service provider will provide compensation.
Reduce owner risk.

Image source: Mingyang Thin Film Technology

[Challenges and Prospects]

Despite the promising outlook, the "second income curve" still faces challenges: green certificate trading activity remains to be boosted; carbon reduction methodologies for the building sector are still imperfect; and local carbon inclusion policies lack uniformity.

However, the trend is clear: future BIPV projects can no longer rely solely on "electricity cost accounting"—instead, they must adopt an integrated revenue model that combines "electricity + certificates + carbon credits + financing" into a cohesive framework.

Only when a piece of power-generating glass can not only supply electricity but also create tradable environmental credits does its true value truly come to light.

[Conclusion: Redefining the Value of BIPV]

We no longer ask only: "How much can this project save on electricity bills?"
Instead, one should consider: "How many green certificates can it generate? How much carbon asset can it accumulate? And will it be able to enter the green finance system?"

BIPV's ultimate competitive edge isn't just technology—it's the "green asset attribute" recognized by the capital market.

Only when every building becomes a "green power station + carbon asset account" will a city's sustainable development truly have a solid economic foundation.