China: "Golden Sun" subsidies announced - 50% on large scale solar projects

The Chinese government started a Golden Sun program on Tuesday to provide subsidies to solar-power projects, to boost the solar industry as a new growth point for the country's economy.

The Ministry of Finance said on its Web site that it will offer 50 percent of investments for solar power projects of more than 500 megawatts and the transmission and distribution network over the next two- to- three years.

The solar power projects in the remote regions that are not connected to the grid will receive subsidies of 70 percent of the investment.

The total generating capacity of such pilot projects in each province should not exceed 20 megawatts, the ministry said. In addition, grid operators will also be required to buy excess electricity at prices on a par with power from coal-fired power plants.