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Suntech gets grant for solar projects

By Liu Yiyu (China Daily)
Updated: 2009-11-17 07:59

The nation has identified 294 pilot projects under the new scheme. [China Daily]

Chinese solar panel maker Suntech Power confirmed it had received a subsidy for developing 20 percent of the 91 megawatts (mW) of solar projects under the central government's solar rooftop program.

It is estimated that Suntech will get a subsidy of 1.4 billion yuan under the solar rooftop-plan, part of China's efforts to encourage the development of solar industry.

Zhejiang-based solar firm Chint Solar Technology has also been granted subsidies that the company CEO said could save costs to the tune of nearly 50 percent.

"With government subsidies, we could expect an 8 percent return on investment annually," said Chint Solar Technology CEO, Yang Liyou.

China is accelerating solar power development by identifying 294 pilot projects with a total generating capacity of 642 mW under its newly launched plan "Golden Sun", signaling another step for the applications of solar technology.

Related readings:  China’s biggest rooftop solar power base takes shape  China, US will grow solar power competition  Solar industry is reined in  Large solar power project starts in Central China

These projects are expected to cost around 20 billion yuan and would be ready for use in two or three years, the Ministry of Finance said on its website.

Among the 294 pilot projects, Henan and Zhejiang provinces contributed 31 programs respectively, followed by Jiangsu and Anhui provinces.

The capacity will be nearly 30 percent more than the 500 mW target China set in July when it launched the "Golden Sun" plan. China is likely to triple the target to 1,500 mW by 2015, an official from the Ministry of Science and Technology said recently.

"This has been the government's second round of subsidy for solar firms, which will subsidize half of the investment cost," said Li Junfeng, deputy director general at Energy Research Institute of National Development and Reform Commission (NDRC).

The finance ministry is encouraging firms to apply for subsidies and has laid out specific price and quality requirements for parts and components in the qualified solar power projects.

China initiated the solar rooftop plan in the first half of this year, in which the government is providing subsidies for buildings with solar roofs, while the golden sun plan focuses on subsidizing solar power plants.