Solar Energy China

China has over 400 photovoltaic (PV) companies and produces approximately 18% of the photovoltaic products worldwide.In 2007 China produced 1700 MW of solar panels, nearly half of the world production of 3800 MW, although 99% was exported. China has installed about 80 MW of photovoltaics. Solar water heating is used extensively, though.

China is a large producer of polysilicon, for use in first geration solar cells around the world. A byproduct of the process is silicon tetrachloride, which is normally processed and recycled at a higher cost in the developed world, is often dumped by Chinese green startups. This substance is descried as poisonous, polluting, and "like dynamite". These polluting polysilicon plants are said to be the new dot-coms in China. With proper recycling the polysilicon would cost $84,500 per tonne, but the Chinese companes are making it at $21,000 to $56,000 a ton.

The amount of electricity generated with solar power within China itself is so far comparatively small: as of the end of 2008, the solar power capacity attached to the national grid (i.e., excluding autonomous systems) was under 100 MW, i..e merely 0.01% of the nation's power generation capacity. However, rapid expansion was planned: according to the plans unveiled by the National Development and Reform Commission in 2007, the country's installed solar capacity was to grow to 1,800 megawatts by 2020. In 2009, a Commission's official name Wang Zhongying mentioned at a solar energy conference in Shanghai that, in his opinion, the plan may be exceeded several-fold, the installed capacity possibly reaching as much as 10,000 megawatt by 2020.

About 50 MW of installed solar capacity was added in 2008, more than double the 20 MW in 2007, but still a relatively small amount. According to some studies, the demand in China for new solar modules could be as high as 232 MW each year from now on until 2012. The government has announced plans to expand the installed capacity to 1,800 MW by 2020. If Chinese companies manage to develop low cost, reliable solar modules, then the sky is the limit for a country that is desperate to reduce its dependence on coal and oil imports as well as the pressure on its environment by using renewable energy.