China to become top photovoltaic solar energy market in 2012

PV market, according to the latest projections by Solarbuzz, a market research company, China Securities Journal reported Wednesday.

A demand of 6 GW is also possible for this year, said the company. The year 2011 saw China climb to the third largest PV market with a national demand of 2.75 GW, rocketing 470 percent year-on-year.

The austerity policy in Germany and Italy will likely bring uncertainty to their demand for photovoltaic power in 2012, said the report.

In contrast, China’s active measures including an on-grid electricity pricing mechanism and government subsidization have primed its PV market development.

More incentives such as a renewable energy quota system and distributed generation formula will be introduced later this year.

The cost of building a photovoltaic power system in China is among the lowest globally and still on the decline, the report said.