China to Increase Solar Capacity by the End of the Year

China to increase solar capacity by the end of the yearChina plans to double its solar capacity to two gigawatts by the end of 2011. China ranks among the world’s largest solar panel makers in terms of domestic installation. By 2015, the solar feed in tariff could drop below .80 yuan for each kilowatt hour which would be on par with conventional coal fired power tariffs.

China plans to increase the development of clean energy and reduce their dependence on traditional fossil fuels like coal. To also further the construction of solar power plants the national Development and Reform Commission set a benchmark grid for a unified feed in power tariff rate for solar projects.

The rates will be set at 1 yuan per kWh, higher than those proposed and accepted by the State owned solar power developers. Last year rates ranged from .73 yuan to .99 yuan per kWh. By 2010 China was already generating solar power at 900 megawatts of capacity.

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