Chinese renewable energy receives major boost

China has agreed to subsidize small solar power stations.

The National Energy Administration (NEA), an arm of the National Development and Reform Commission, plans to roll out additional solar industry stimulus at an accelerated rate.

The program’s ultimate goal is to raise tepid domestic demand for solar panels and help manufacturers that have found it increasingly difficult to sell products abroad. About 90% of China’s solar manufacturing output is exported.

Solar power subsidy cuts in Europe, the weak global economy and U.S. trade barriers for Chinese-made solar goods are among the factors pressuring domestic manufacturers.

Last September, NEA announced a plan to offer subsidies to encourage solar power station installations nationwide. It said, the government would support up to 15 million kilowatts of installed capacity, or more than US$11.2 billion worth of standard solar panels.

The program favors small power producers. NEA said it would offer subsidies only to stations outfitted with 500 megawatts or less of installed capacity.

Solar power station operators could include companies that install panels on the roofs of apartment buildings, urban commercial facilities and factories.