The Impacts of Photovoltaic Deployment in Rural China

As solar photovoltaic (PV) infrastructure expands rapidly across rural China, its economic implications for local communities have attracted increasing attention. This study provides a high-resolution, micro-level analysis of the impact of PV deployment on rural household income and energy use. We link nationally representative household panel data with satellite imaging data on PV sites between 2010 and 2022 to construct a time-varying measure of PV density within a 1–10 km radius of 381 villages. Using two-way fixed effects and a continuous-treatment difference-in-differences design, we find that PV deployment within a 3–5 km radius significantly increases household disposable income by approximately 8% and raises essential fuel expenditure by about 11%. These effects attenuate with distance from the PV sites. Heterogeneity analysis shows that the fuel expenditure effect is more pronounced among poor households, those located in heating regions, and households using clean or electric heating equipment. We find no significant differences in impact by income level, administrative poverty status, or agricultural income dependence, which provide important insights into the distributive consequences of rural energy transitions. The findings offer empirical evidence to support the design of equitable, spatially targeted PV development policies in developing regions.