The Breakthrough Institute reports: While the US mires itself in controversy over the weakened cap-and-trade bill working its way through Congress, China and India have begun to look ahead with new government investment policies that rapidly expand solar power capacity in each country.
China recently announced a dramatic increase in its expected solar capacity target for 2011, planning to reach 2 GW within the next two years. Already, China’s new renewable energy stimulus plan has expanded the nation’s 2020 target from 1.8 GW to 20 GW–that’s more than triple the amount of PV solar power installed in the entire world during 2008, the industry’s best year ever.
The higher targets will be met by enhancing government subsidies and other deployment incentives, which currently stand at US $2.93/watt capacity for roof-mounted systems greater than 50 kW. Government officials have suggested that the current US $.16 per kWH feed-in tariff for ground-mounted PV systems may be adjusted in order to make solar power production profitable.
Last month, India also signaled that it sees solar as a crucial component of a future clean energy economy, when its New and Renewable Energy Committee announced a massive National Solar Mission. In what one Greenpeace India representative called “the most ambitious solar plan that any country has laid out so far,” the National Solar Mission matches China by setting a new target of 20 GW solar capacity by 2020. What’s more, India estimates that the plan could bring the now-prohibitive cost of solar down to US $.08-.10 per kWh by 2017-2020, making it cost-competitive with fossil fuels.
