China is the biggest solar cell producer in the world in 2007 with production output of 1,088MW. And over 98% solar cells are exported to international market, only 20MW solar cells are installed in China.
The reason that the solar cells are not widely installed in China is that the solar power cost is too high at present, almost 10 times higher than the coal power, and lack of government incentive subsidies.
The power grid companies have not accepted any solar power grid connection request since they have some concerns about the solar power cost and the stability of the solar power. The commercial investment in the solar power generation is not practical at all.
At present The National Development and Reform Commission is organizing some experts to draft the solar power incentive subsidies policies. The National Development and Reform Commission is planning to request the power companies to buy the solar power generated by some desert demonstration solar power projects at the price of 4.00 RMB per KWH.
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