China launches major solar subsidy

China launched a plan to offer significant subsidies to independent solar power projects, Reuters reported. The move is aimed at boosting the country’s solar energy sector and could draw more than US$10 billion in private funding, putting China on track to become a leading market for solar equipment in the next couple of years. The Ministry of Finance announced that the government will subsidize 50% of investment for solar power projects as well as relevant power transmission and distribution systems that connect to existing power grid networks. The subsidy will increase to 70% for independent photovoltaic power generating systems in remote regions that have no power supply. In order to qualify for the subsidy, each project must have a generating capacity of at least 300 kilowatt peak, construction will have to be completed in one year and operations will have to last for at least 20 years.