The Chinese government has announced what observers are describing as the most generous and aggressive power subsidy in the world.

China is offerring 20 yuan (about $au4.30) per watt for solar voltaic installations greater than 50 kilowatts. This would amount to about half the cost of the installation.

China has built up a sizeable solar industry based almost entirely on exports but several large-scale domestic solar power projects have been announced in the past year – including a 1 gigawatt power plant in Qinghai’s Qaidam Basin that would be the world’s largest photovoltaic project.