China will be adding 10GW of solar power annually for the next 3 years, said a statement from the State Council. This statement was posted on the central government's website Monday. This was equivalent to more than 35GW or a fivefold increase of solar power installation by 2015.
This new plan's purpose was twofold. First, it aimed to reduce reliance on exports. Second, it wanted to help ease oversupply. Slow exports and oversupply contributed to a 20% decline in solar panels' average price last year for the largest solar panel maker in the world. This was according to Bloomberg.
The State Council's statement also added that credit support will be provided by the government to manufacturers. This aimed to encourage restructuring as well as investments overseas.
"While the Chinese government is determined to boost the domestic market, it is not sufficient to eliminate oversupply. Panel prices will stay stable in 2013," said Wang Xiaoting of Bloomberg New Energy Finance.
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