The Renewable Energy Law of China, which came into effect on
January 1, will boost the development of renewable energy in the
years to come.
The law stipulates that development and use of renewables such
as solar energy are an area of priority for future energy
development.
For example, real estate developers are required to take the use
of solar energy into consideration when designing and constructing
buildings.
The Chinese Ministry of Construction has also listed as one its
goals in its energy-efficient program for buildings during the
2000-2010 period the provision of solar panel heaters in at least
20 percent of Chinese homes.
Luo Zhentao, head of solar energy thermal application with the
China Association for Renewable Energy in Rural Areas, contends
with the promulgation of the measures, which are sure to advance
thermal application of solar energy. He added that it is imperative
that the central Chinese government gives preferential tax
treatment to businesses engaged in converting solar energy into
heat.
"Lowering the current 17 percent value-added tax for thermal use
of solar energy to six percent will help reduce operating costs for
enterprises and encourage them to increase investment in technical
upgrading," Luo said. He believes rural areas are key to the use of
affordable home solar panel heaters in the future.
China now leads the world in the production and application of
solar panel heaters. It has 2,000 businesses engaged in thermal
application of solar energy and produces 75 million square meters
of solar panel heaters, or 60 percent of the world's total.
75 million square meters of solar energy heaters generate the
same amount of energy as 110 million tons of standard coal
annually.
It is estimated that the Chinese market demand for solar panel
heaters will rise to 300 million square meters by 2020.
(Xinhua News Agency February 5, 2006)