Harnessing Solar energy, Options for India

Annual Installed Capacity (GW)
5.5. China
Although the cumulative installation of PV in China is low (about 305 MW by end of 2009), 22 it has
now become the leading manufacturer of PV modules. In 2007, the National Development and
Reform Commission, the economic planning ministry, under its renewable energy plan set out a
target of 1,800 MW of installed solar capacity by 2020. 23 Under the new energy stimulus plan, China
revised its 2020 targets for installed solar capacity to 20 GW. The government also approved a
subsidy of 20 yuan per watt (`132 per watt) for solar PV systems larger than 50 kW fixed on
building roofs. For ground-mounted projects, the government is paying a feed-in tariff instead of a
subsidy, based on the project’s capacity. 24
6. Conclusion
4
3.5
3
2.5
2
1.5
1
0.5
Germany
Spain
Japan
USA
Rest of the
world
0
2006 2007 2008 2009
Figure 4: Annual Installed Capacity of Solar PV
(Sources: Compiled by authors from NREL, 2008 Solar Technologies Market Report, 2010,
http://www.nrel.gov/analysis/pdfs/46025.pdf, accessed 28 October 2010; EPIA, Global Market Outlook for
Photovoltaics until 2012-Facing a Sunny Future, 2006,
http://www.epia.org/fileadmin/EPIA_docs/publications/epia/EPIA__MarketPublication_18feb.pdf, accessed 28
October 2010)
Though solar PV technology is booming, it is yet to be seen if it can have a sustainable growth in the
absence of subsidies and governmental support. The Spanish PV market is a good case in point,
where the deployment dropped considerably in 2009 when the government withdrew its subsidy, as
can be seen in Figure 4. Germany on the other hand has had another year of stellar growth. The
effect of the recent decrease in feed-in tariffs in Germany remains to be seen.
Photovoltaic Technology CSTEP | Page 32