China to become Solar leader within 3 years

The Chinese government is backing solar power in a big way. China intends to have $10 billion in private funds raised and spent on solar in the next 3 years, making it a market leader.

China is serious about finding alternatives to fossil fuels.

Although China supplies half the world's solar panels, it contributes very little to demand as the cost of tapping solar energy to generate electricity remains steep and investors find little economic sense in pursuing solar projects in China where incentives are few.

But that's about to change.

China's government said in March it will offer to pay 20 yuan ($2.90) per watt of solar systems fixed to roofs and which have a capacity of more than 50 kilowatt peak (kwp).

The subsidy, which could cover half the cost of installing the system, was popular among developers, attracting applications equivalent to the building of 1 gigawatt of solar power. --Reuters.com