The political and economic environment in China is suitable for the development and growth of the solar PV power industry. In the future, the formulation of PV power industry development plan will increase considering the sustainability and capacity building rather than the government subsidies.
In 1989, China’s first 10 kW PV power station began operation in Tibet. In the 1990s, the Institute of Electrical Engineering at the Chinese Academy of Sciences developed and constructed an independent PV station. A few production bases were formed in the Pearl River Delta areas and China began to export various PV products.
So far, many studies have been conducted on solar PV developments in China, yet the majority of these focused on the top-down dimension, which is central government policy guidance, whereas the bottom-up dimension in the policy-making process, that is, the influence of PV enterprises and local governments on the central government, is overlooked.
Solar energy in the transitioning of energy system (adapted from ). Currently, the market problem is considered to be the main obstacle that hinders the development of the PV industry in China. The country's domestic demand has lagged behind its expansion of manufacturing capacity.
China has introduced several national standards to guarantee the quality of SWHs and has put the Chinese Committee for the Standardization of Solar Energy in charge of this process. Three product-testing centers exist in Beijing, Hubei, and Yunnan, although some leading firms have their own testing centers.
A four trillion RMB stimulus package along with about 10 trillion RMB of bank credit were implemented after 2008. In Jiangsu province alone, the local PV industry received over 10 billion RMB in credit from the China Development Bank (CDB). The CDB financed the solar industry out of the needs of national grand strategy.
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