The Chinese government just announced it will offer significant new subsidies to solar power manufacturers. According to Reuters, the government will cover 50 percent of investments for solar power projects and necessary power transmission and distribution projects. There are some qualifications for companies to receive the subsidy: The projects must generate at least 300 KW at peak power, must be maintained for 20 years and must be completed in a year. PV systems installed in rural regions currently without power will qualify for higher subsidies of 70 percent of investment.
According to Reuters, the announcement could bring in $10 billion or more in private funding for these projects, and will likely benefit companies like Suntech, Yingli Green Energy and Trina Solar. The article quoted HSBC analyst Christine Wang, who advised that “This is very positive for the solar sector and positive for solar stocks out there.”
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