Shandong is also taking the lead in developing solar energy technology. Photovoltaic generating projects, which convert solar energy into electricity for a wider range of uses, have a good start in Shandong. So far, operational projects have produced 1,565 kilowatts of electricity. The first photovoltaic power plant in Shandong has started to work with a yearly output of 1.3 million kilowatt-hours. And in 2009, sales revenue of the photovoltaic industry reached 18 billion yuan (US$2.64 billion), a 39-percent increase.

Solar yard lamp   [Li Shen/China.org.cn]

Over the next three years, Shandong will spend 1.2 billion yuan (US$175.8 million) to encourage technological innovation and promote new energy, which includes solar energy, and its application in rural areas.

New energy currently accounts for 5 percent of Shandong's total energy consumption. Through polices on capital, price, land and tax reduction, the government aims for it to account for 6 percent of total energy consumption by 2015 and 13 percent by 2020.