China Solar Gets a Boost

It looks like China is not leaving much to chance when it comes to renewable energy. With their low (yet admittedly increasing) cost of labor, focus on moving up the value chain production, and immense investment in research and development, they are staking a claim as an economic colossus focused on clean energy. Of course, the current instatiable demand for energy is causing them to scour the world for resources and burn mountains of polluting coal in the process. The need for energy and the current and building environmental woes from its use, is forcing China to make a shift toward other technologies.

A few weeks ago, they introduced a national solar feed-in-tariff (FiT) to bolster the industry. Much like Germany did, this will create a demand driver for a growing solar power market. Up until now, the solar power industry in China has relied largely on exports. The move will help China hit its 2015 installed capacity target of 10 gigawatts (GW), up from 0.5 GW currently (2000% growth), and could spawn one of the world’s largest markets for solar panels. With the 12th Five-Year Plan (FYP) period, the centrally planned government is looking to lean more heavily on developing the sun as a resource as opposed to currently preferred wind power projects.[Image]