China's Solar Energy Market

• 2/3's of China's land area receives more than 2,000 hours of sunlight annually, more than any other region of similar latitude.

• Current focus for solar is small industrial & commercial applications, and rural electrification programs (off-grid).

• This year, 1,000 rural townships will install electrification systems, mostly small-scale hydro and PV systems.

• An additional 20,000 townships totaling 1 gigawatt will be added in the next 3-4 years.

• The industrial applications for solar include: telecommunications, cathodic protection for pipelines, railroad, and water heating.

• Most experts believe China will introduce policies requiring domestic installations of solar PV systems for electricity and heating.

• The government has not yet proposed any national policies for in-grid, large-scale systems.  Test systems have been built in Beijing and Shanghai and are still in review.

Opportunities for U.S. Solar Companies

• Foreign companies building larger off-grid solar systems can compete with the local Chinese manufacturers.  Large systems can be sold for industrial applications- timber treatment, agricultural processes, cooling & heating space.

• Companies producing more efficient and cost-effective solar PV systems can compete with the Chinese manufacturers having less efficiency and primitive technologies.

• Tenders for in-grid systems will start in late 2008.  Foreign companies typically have better and larger scale in-grid technologies.