China targeting 35GW of Solar PV by 2015

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Publication date: July 25, 2013.

Status note: Present-tense statements, market figures, deadlines and program details in the archived record belong to its publication date. Check current official sources before making a decision.

What this article reported

> Last week the State Council confirmed plans to increase its installed solar capacity fivefold to more than 35GW by 2015, and clarified that current subsidies will be valid for 20 years.

Read more: http://www.businessspectator.com.au/article/2013/7/24/solar-energy/chinas-massive-solar-shift#ixzz2a0dFkiS5

And at midday on July 21, 2013 Germany set a world record for solar power production with 23.95 GW produced . Approximately 1.3-1.4 million solar power systems helped to set this record.

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What were China's solar capacity targets announced by the State Council in July 2013?

China's State Council confirmed plans to increase the country's installed solar capacity fivefold to more than 35 GW by 2015. This represented a significant escalation of China's renewable energy ambitions and reflected growing recognition of solar energy's role in meeting electricity demand. The announcement also clarified that current subsidies supporting solar installations would remain valid for 20 years, providing long-term policy certainty for investors and project developers. Such targets demonstrate how governments can use capacity planning and subsidy certainty to accelerate renewable energy adoption at scale.

Why did China's State Council clarify that subsidies would be valid for 20 years?

The 20-year subsidy validity period was designed to provide long-term policy certainty and investment security for solar developers and equipment manufacturers. Solar projects typically have multi-decade operational lives, and investors need confidence that support mechanisms will remain available throughout the project timeline to justify capital expenditure. By anchoring subsidy duration to a 20-year horizon aligned with typical project economics, the State Council aimed to reduce investment risk and encourage sustained market participation. This approach reflects how governments structure renewable energy support to balance fiscal sustainability with investor confidence.

What was Germany's solar power production achievement in July 2013, and what does it indicate about renewable capacity?

Germany set a world record on July 21, 2013, generating 23.95 GW of solar power at midday, produced by approximately 1.3 to 1.4 million distributed solar systems. This achievement demonstrates that high renewable energy penetration is technically feasible even in temperate climates and that distributed solar generation across many small systems can aggregate to utility-scale output. The record illustrates how cumulative residential and commercial solar adoption creates significant grid-level capacity. For organisations evaluating renewable energy strategies, Germany's example shows that large-scale deployment through distributed installations can achieve measurable grid impacts and reduce dependence on centralised generation.

How do China's 35 GW solar target and Germany's distributed solar record inform renewable energy strategy?

China's top-down capacity target and centralised investment approach contrasts with Germany's distributed model, yet both achieved substantial solar deployment. China's strategy uses national targets and subsidy certainty to mobilise capital at scale, while Germany's decentralised approach engaged individual consumers and businesses. For energy planners, this comparison shows multiple pathways to renewable adoption: coordinated national programmes, market-driven incentives for distributed systems, or hybrid approaches. We assist organisations in evaluating how different renewable pathways—centralised procurement, on-site generation, or community models—align with their operational footprint, financial capacity and decarbonisation goals.

What are the practical implications of a 20-year subsidy horizon for solar project development?

A 20-year subsidy commitment directly affects project economics by securing predictable revenue streams across the investment recovery period. Developers can model cash flows with greater confidence when support mechanisms are legislatively anchored, reducing the discount rate required to justify capital expenditure. This certainty enables financing structures that might otherwise be unavailable if subsidy duration were uncertain. For organisations considering solar investments, understanding the subsidy framework's longevity is critical for investment-case assumptions. Our investment-case guidance emphasises clearly stating support assumptions and their durations separately from core operational savings, allowing management to see how policy changes would affect project viability.

What do China's 35 GW target and the scale of deployment suggest about manufacturing and supply chain implications?

Achieving a fivefold increase in solar capacity within approximately two years requires rapid scaling of manufacturing, supply chain logistics, installation capability and grid integration. China's target implied sustained demand for solar modules, inverters, mounting systems, installation services and grid-connection infrastructure. Large-scale targets create visibility for equipment manufacturers and installers to invest in capacity expansion. For businesses evaluating renewable energy deployment at portfolio scale, understanding supply-chain readiness is essential. Our feasibility and procurement services help organisations assess whether supply capacity exists for their proposed timeline, identify bottlenecks in equipment or installation availability, and sequence projects to align with realistic delivery schedules.

How do announced solar targets influence investment decisions for organisations considering renewable energy?

Government-announced capacity targets and subsidy commitments reduce policy uncertainty and signal sustained market demand, which influences equipment pricing, installer availability and financing terms. Clear targets attract investment in manufacturing capacity and distribution networks, potentially lowering equipment costs through competition and economies of scale. Organisations can use such announcements to assess market direction, timing of technology maturation and likely availability of skilled installers. However, targets do not guarantee individual project eligibility or profitability. Our role includes reviewing announced targets within their specific scheme context, assessing whether a particular organisation's project meets eligibility criteria, and building investment cases that distinguish achievable operational benefits from policy-dependent revenue streams.

What distinguishes a government capacity target from individual project eligibility for incentives?

A national capacity target represents aggregate policy ambition and may indicate sustained government commitment to renewable energy, but it does not automatically establish that a specific project qualifies for subsidies or certificates. Individual project eligibility depends on detailed scheme rules covering location, equipment specifications, system capacity, commissioning dates, ownership arrangements and measurement requirements. A project meeting technical criteria does not guarantee incentive availability if the scheme has reached allocated funding limits or if implementation timing falls outside eligible windows. Our certificate and funding assessment services review announced programmes against actual scheme documentation and project circumstances, ensuring that organisations understand the distinction between headline targets and their specific project's eligibility status.

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