The Chinese government announced a new solar energy promotion support strategy, with the goal of achieving 1000 MW of solar photovoltaic power generation per year from 2012. The goal is to achieve a total installed capacity of 20000 MW by 2020.

 

According to the statement quoted by the media, financial support will cover up to 50% of the cost of factory parts. The remaining cost will be supported by a subsidy of 4 to 6 yuan (45 to 67 euro cents) per watt installed. In this way, the Beijing government plans to significantly reduce the cost of solar energy, which is about seven times the kwh of coal-fired power generation.

 

To support the plan, 13 special areas are considered suitable for the development of innovative projects. One area is Beijing, where the plan is expected to install about 700000 square feet of industrial and commercial roofs.

 

These new measures are not only designed to support the national goals of renewable energy development and emission reduction, but also to help China's industrial sector, which is experiencing a delicate moment. In fact, although the country exports 98% of its products and is the world's largest exporter of photovoltaic modules, it has been affected by the depreciation of the euro against the RMB. If the European market (currently the largest market) reduces demand after the expected subsidy reduction, it may collapse. In addition, the U.S. market also has difficulties because Washington protested that Chinese prices are too low and threatened to enforce tariffs.