The process of getting a permit is as follows, PV projects planning and exploring, get the lands from local government, then obtain the preliminary permit of grid access, at last, gain the building permit from Local development and reform commission.
A 10MW solar plant，from the launch of construction to obtain a building permit, do you know how many obstacles does it to overcome, how much is the total investment ?
"For example, a 10MW solar project in west of China, if you get the permit by yourself, then the expense will be amount to RMB 0.6million to 0. 7 million; if you buy the permit from others, on the basis of RMB 0.2/W，then the price will be reach 2 millions." Shen yun, a solar project investor said. "Permit broker is very common in the PV industry."


Due to this complex process, permit broker become essential. They didn't invest the solar project, instead of creating several companies that connect local government, they will resale to project investor when they got the permit. 


Shen explained, most of the permit brokers are locals, they have great advantage of land approval，on-grid and government relationship, compared to private investor, even the big five utilities, "some of stated-run investment projects are bought from these brokers."


China PV total installed capacity was reached 2.89GW in 2011, second only to Germany and Italy, ranking third in the world. Several industry players expects, about 1GW was taken by brokers, so this brings out a 200 to 400millons commission market.


In 2009, Shen yun engaged in photovoltaic industry investment, mainly he engaged in photovoltaic power station construction, investment and operation. “Any manufacturing industry in China, as long as having the potential of development, no matter how sophisticated, in a few years it will become a capital intensive enterprise.” Shen Yun said.
Shen Yun said, a lot of brokers are not industry players, even don't know about the photovoltaic industry, but they saw it could make great benefit chain. “many investors from Beijing, Jiangsu and Zhejiang, the Pearl River Delta area, they didn't familiar with the local culture, but those permit brokers rapidly occupied a large portion of market share , and makes the numbers of permits beyond government planning.


The numbers of brokers is much more than projects, it resulted to some project price have reached 0.3-0.4 yuan / W for buying a “Permit”, namely 10MW to four million dollars.” He complained, it almost no money to make based on this price.
After the investor got the permit, they need to make environmental impact assessment and other process, finally get the Commission’s approval to start construction.
 Shen Yun said, make pre-researching report costs 0.1 million to 0.2 million yuan, environmental impact assessment needs about 200,000 yuan , all documents will cost 1 to 2 million, “you have to authorize those things to specialized agencies”, but if you authorize those to the third party and get an approval, a total cost would reach “2 million to 3 million yuan”. Such as a 10MW photovoltaic power system, if you let the brokers to do this whole process,   total cost is about 3 million to 5 million.
Living space will be reduced


 ”Of course, not all permit brokers can got all of money.” Shen Yun admitted, both parties  will bargain., but some companies continue to get approval documents before payment.


 More importantly, as the development of domestic photovoltaic project , more than 10MW project gradually increased, so the standard become more rigid, said Shen Yun. 


  The cost of A 10MW PV systems is similar with a 30MW project, “may be, even the permit cost of a 30MW project is identical. In this case, many enterprises will directly buy 30MW power station”.


　Currently, new policies for the permit transaction may be published. According to a file from Inner-Mongolia government, incentives for electricity price will directly provide to applicant and can’t be transacted until the grid connection; Also, Jiangsu Province will simplify the proceeds, and request whoever gets the permit, he also needs to pass the feasibility study, the EIA and the other pre-period works. The huge investment makes the permits brokers have not enough profit and be unmeaning, so brokers' living space will be greatly reduced. 


Shen confirms, new policy means a company needs to take some funds as a mortgage to governments, so a large of poor brokers will be exited. “some may be become an employee or a middleman, in order to reduce the gray market ”.