New energy has been developing rapidly in the past few years. The sales revenue of solar energy industry in Shandong increased 46 percent in 2009 to 26 billion yuan (US$3.8 billion). The provincial government has implemented policies both to boost the solar energy industry, focusing particularly on green buildings.

In 2008, the reform and development committee of Jinan, the capital city of Shandong, required all buildings with 12 or fewer floors to use solar energy.

"Buildings consume 30 percent of China's energy," said Wen Zheliang, executive deputy general manager of Linuo Paradigma, a leading company in solar power.

Now, 26 projects totaling 7.8 million square meters of residential buildings in Shandong have become national demonstration projects of energy-saving and environmental protection.

The province will increase the percentage of homes that use solar water heaters from 20 percent to 40 percent in cities and 5 percent to 10 percent in rural areas over the next three years.