New legislation in China to boost rooftop solar panels

The government in China will announce new legislation that will encourage the growth of rooftop solar panels on commercial rooftops.

Energy users will be encouraged to use rooftops and other available spaces to install solar panels, with excess power generation to be distributed to local consumers.

The government is targeting reduced energy costs and green house gas (GHG) emissions in industrial regions heavily reliant on fossil fuel sources.

The announcement is expected later this month and major Chinese solar manufacturers have already seen their stocks increase in value, with Trina Solar enjoying an 8.1 per cent boost.

JinkoSolar Holding co. saw an increase of 7.1 per cent.

China is aiming to install 8 gigawatts of solar power capacity by 2015 and the new incentives are expected to significantly assist the target.

Local governments will be encouraged to increase subsidies for community solar projects and will also be urged to promote the expansion of renewable energy projects at civilian locations, including schools and hospitals.

Public commercial buildings will also be used as part of the new initiative, including railway stations and airports.

China is still the biggest polluter in the world and earlier this year the World Health Organization (WHO) found that air pollution in parts of the country is at a dangerously high level.

The government has unveiled various measures to tackle what has become a critical social issue with Premier Li Keqiang describing smog as "nature's red-light warning against inefficient and blind development".

China plans to reduce outdated steel production capacity by a total of 27 million tonnes in 2014, cut cement production by 42 million tonnes, and also shut down 50,000 small coal-fired furnaces across the country.