China quadruples solar power installation target

China quadrupled its solar power project domestic installation targets by 2015 to 21 gigawatts to help absorb the excess supply of panels.

The move is also intended to support prices.

Chinese solar panel makers led by Suntech Power Holdings Co and Trina Solar Ltd suffered from cuts in Europeansubsidies and a global supply glut that drove prices lower.

The target includes 1 gigawatt of solar-thermal power plants, said Shi Lishan, deputy director of the National Energy Administration’s renewable energy division.

China had planned 5 gigawatts of capacity in the five years through 2015 and 20 gigawatts by 2020.

“The new target is still very conservative; we expect the installation to surpass 30 gigawatts," said Lian Rui,a senior analyst for research company Solarbuzz.

Solar module prices have plunged about 42 percent to the current $0.87 a watt from a year earlier, squeezingprofit margins of manufacturers, according to Bloomberg New Energy Finance data.

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