China raised its domestic solar energy goal to 21 gigawatts by 2015 to help its domestic manufacturers by absorbing surplus and supporting prices, China Daily reported, citing Bloomberg.

The new goal includes around 1 GW from solar-thermal power plants, said Shi Lishan, deputy director of the Chinese government's renewable energy division.

Under its 12th five-year plan for renewable energy, the country originally targeted 5 GW of solar by 2015 and 20 GW by 2020.

The decision was made in support of local solar panel manufacturers who are currently suffering from a decrease in international business due to cuts in European subsidies and low solar module prices brought about by a global supply surplus, the official Chinese news agency reported.

According to Bloomberg New Energy Finance, solar module costs fell by about 42 percent to the current $0.87 per watt from a year earlier, putting high pressure on profit margins.

The government is also offering funding for domestic solar projects under the Golden Sun Program, a national solar subsidy program. The aim of the solar subsidy program is to promote renewable energy generation and create a domestic market for solar products.

Last May, projects from GCL-Poly, Yingli Green Energy and about 100 other developers of projects with 1.7 GW in combined capacity were found eligible for a subsidy of $0.87 a watt under the program. – EcoSeed Staff