China Allocates $2 Billion of Solar Subsidies, Xinhua Says

China allocated a total of 13 billion yuan ($2 billion) this year from central government funds for domestic solar installations, Xinhua News Agency reported.

The funds will be spent on solar power demonstration projects with 5.2 gigawatts of capacity, Xinhua said, citing an unidentified official from the Ministry of Finance. China will provide an incentive of 5.5 yuan a watt for projects whose developers will consume the power for their own use.

The subsidies will be raised to 18 yuan a watt for residential systems and 25 yuan a watt for independent photovoltaic power plants, the government-owned news agency said.

China started offering the subsidies since 2009 to bolster the use of solar power. The nation chose 4.5 gigawatts of solar projects eligible for subsidies under the so-called Golden Sun program this year.

The government will focus on selecting large-scale projects and big companies for demonstration, Xinhua reported. Two phone calls to the ministry’s Beijing-based press office went unanswered.

To contact Bloomberg News staff for this story: Feifei Shen in Beijing at fshen11@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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