Backed by various government measures and polices, the PV industry in China is showing stupendous growth, further triggering development of the industry.

According to Lv Jinbiao, vice-general manager of the largest polysilicon plant in Asia- Zhongneng Polysilicon Technology Development Co., among all the industries in China, the PV industry enjoyed the earliest revival, with an annual growth of more than 20%, as per the news published by People’s Daily Online on December 24, 2009.

The global economy remains sluggish due to the financial meltdown in 2008. Being the world’s biggest producer of photovoltaic cells, China heavily relies on exports of these PV cells to utilize its production capacity. The photovoltaic industry in China has received severe blow by the sudden cooling in its export markets.

The government, in H1 2009, successively announced several policies to trigger the outset of photovoltaic market in China. The Ministry of Finance, on March 23, 2009, in collaboration with the Ministry of Housing and Urban-Rural Development released The Interim Administrative Measures for Fiscal Subsidy Funds to Support the Application of Solar Photovoltaic Buildings and The Implementation Opinions on Speeding up the Application of Solar Photovoltaic Buildings in order to back the demonstration solar PV buildings projects.

In order to encourage integrated application of solar PV buildings in cities as well as to provide fixed-amount grants for the utilization of photovoltaics in the buildings in rural and far flung areas, the government has implemented the Solar Roof Program.

Measures taken by the government have shown results in pushing the photovoltaic industry, and this can be proved through the execution of large-scale photovoltaic grid-connected power plant projects.

The capacity consumption of the key PV wafer producers in China has reached 100%, thereby driving the executives to give a positive outlook for 2010.

It is to be noted that 30% share of the global photovoltaic solar panels market is held by China. These solar panels are used to produce electricity. The country’s officials are in talks to elevate the solar power capacity targets five or ten times with the hope that China could possess more than double the present solar power capacity by 2020.

According to a Research Analyst at RNCOS, “China’s photovoltaic market is reporting explosive growth owing to significant national photovoltaic policies, thereby assisting to the industry’s healthy development, and further optimization of the country’s energy structure. Moreover, the government is expected to draft more favorable measures so as to draw investments in solar power projects”.

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