According to a July 15 statement from the State Council, China will increase its installed solar capacity to 35 gigawatts (GWs) by 2015. The country plans to add 10 GWs of solar-power capacity annually over the next three years.
China is already the world’s biggest maker of solar panels, but it is suffering from oversupply. The expansion of domestic solar is designed to reduce the problem of oversupply that is plaguing the Chinese solar industry.
To achieve its ambitious goal China will help supply credit to profitable photovoltaic (PV) manufacturers, encourage overseas investment and offer tax breaks to solar companies that acquire others, merge or reorganize their operations. The government will also encourage partnerships between the makers of polysilicon (used to make solar panels) with chemical companies. China’s installed solar capacity is growing faster than any other country and it is expected that it will soon surpass Germany which is the current global leader.