China to approve more solar projects

Chinese authorities are to approve more domestic solar projects, to support the Chinese solar companies that are suffering from trade obstacles in the US and Europe.

The Ministry of Finance, the Ministry of Technology, the Ministry of Housing and Urban-Rural Development and National Energy Administration announced recently they will approve a new round of solar projects that have more than one gigawatt of installed capacity, Shanghai Securities News reported on Monday.

Once they get approval and install devices before next June, people using solar energy will get a subsidy of 5.5 yuan to 7 yuan ($0.88 to 1.3) per watt. Solar plants in remote areas will get a subsidy of 25 yuan per watt.

Industry profits have suffered in recent years because of a supply glut. The US and possible EU duties on Chinese solar products also put pressure on Chinese companies. Industry insiders believe developing the domestic market will be crucial to their future.