March 26 (Bloomberg) -- Chinese solar stocks rose the most ever in New York trading after China, the world’s biggest greenhouse-gas emitter, introduced a subsidy to promote the use of alternative energy.

The government will offer this year 20 yuan ($2.93) per watt for solar projects with generating capacity of at least 50 kilowatts, the Ministry of Finance said in a statement posted today on its Web site.

“We believe meaningful upside potential exists if government support for domestic solar sector continues,” Barclays Plc analyst Vishal Shah wrote in a note to clients.

Suntech Power Holdings Co., China’s largest solar-power manufacturer, soared 49 percent to $11.77 at 12:39 p.m. in New York Stock Exchange composite trading, the most since it offered shares in December 2005. The eight biggest gainers in the Bank of New York Mellon Asia ADR index were solar companies.

China, which derives 75 percent of its electricity from coal, is closing older coal-fired power plants and resorting to cleaner energy to fuel economic growth.

The nation wants to boost the proportion of renewable electricity to 23 percent by 2020 from 16 percent in 2006, according to the Climate Group, a coalition of companies and governments that support solutions to global warming.

China will implement the “solar roofs program” to accelerate the application of solar energy, the government said in the statement dated March 23.

Shares of U.S.-listed Chinese solar makers rallied.

Yingli Green Energy Holdings Co. surged 47 percent to $6.12. JA Solar Holdings Co. gained 34 percent to $3.57. LDK Solar Co. advanced 43 percent to $8.40.

The Asia ADR index rose 1.9 percent to 93.77.

To contact the reporter on this story: Lu Wang in New York at lwang8@bloomberg.net

Last Updated: March 26, 2009 13:07 EDT