Barriers and Interactions for Emerging Market Entities in Electricity Markets: A Case Study of China’s Photovoltaic Industry

Uncovering the interdependencies among barrier factors and pinpointing the most critical obstacles are essential to overcoming the resistance encountered by photovoltaic (PV) integration into electricity markets. This study first employs grounded theory to identify and categorize the key barriers impeding PV participation, thereby constructing a comprehensive barrier factor model. Subsequently, Interpretive Structural Modeling (ISM) is applied to systematically analyze the interrelations and hierarchical structure among these barriers. The results reveal that: (1) The complex system of PV participation comprises 15 distinct barriers, which can be grouped into 4 overarching categories: economic and cost-related challenges, policy and regulatory uncertainties, technological and infrastructure constraints, and environmental and resource limitations. (2) These barriers form a six-tier hierarchical structure, reflecting their layered influence. (3) Root-level barriers—such as inadequate government fiscal support and the absence of a comprehensive coordination mechanism—play a foundational role in hindering progress. In response, this study proposes policy recommendations, including establishing a unified and effective coordination framework to align renewable energy policies and formulating standardized guidelines for PV panel recycling.