Abstract: To speed up the grid-connected solar power generation marke-to riented operation and to cultivate strategic new industry,the Government will compensate the grid-connected PV project based on the total project investment.By the real option theory,this paper researches the investment and the cos-trecovery policy in the grid-connected photo voltaic power generation projects under the uncertainty of the cost and the on-grid price.First,the bestinvest ment timing for the power generation enterprises and the effect of the cost-recovery policy on investment strategy are derived.Second,the accessibility of the bestinv estment opportunities is discussed,and a necessary condition for the successful implementation of the cost-recovery policy is also obtained.Finally,we get the cost-recovery ratio under the expected waiting time for investing,and furthermore,conclude the cost-recovery policy for the government.

Key words: grid-connected PV, real option, cost-recovery, uncertainty, accessibility