Subsidy design for sustainable building-integrated clean energy systems : from generation expansion to system integration

Abstract

Achieving long-term urban sustainability requires energy subsidy frameworks that evolve with changing technological conditions and system needs. Renewable energy subsidy regimes have played a decisive role in accelerating building-integrated solar photovoltaic deployment, but many were designed for an earlier expansion phase focused mainly on increasing generation capacity and reducing technology costs. As electricity systems move toward an integration phase characterized by higher renewable penetration, flexibility constraints, storage needs, and cross-sectoral coordination, generation-centric subsidy architectures may become increasingly misaligned with system-level requirements. This study conducts a structured comparative analysis of subsidy design in Hong Kong, Chinese Mainland, and Australia, examining legal foundations, target scope, incentive structures, and technology orientation across expansion and integration phases. Despite major differences in governance systems and market organization, the findings show a common pattern: Principal subsidy instruments remain anchored in output-based performance metrics, while storage, hydrogen, and hybrid technologies are generally supported through supplementary rather than core mechanisms. The study argues that this policy layering may limit technological inclusiveness and reduce alignment between subsidy design and evolving system needs. It therefore proposes a system-value-oriented comparative framework for subsidy redesign that recognizes flexibility, reliability, and integrated clean energy performance in the built environment.