The Chinese government has announced a CNY0.42/kWh (US$0.07/kWh) subsidy for distributed solar projects below 6MW, according to local press reports.

Last week the State Council announced plans for a renewed push on distributed solar energy with 100 demonstration zones and 1,000 towns and villages picked for pilot programmes. It also raised the national capacity target for 2015 to 35GW.

The appetite for smaller-scale PV projects in China has previously been tempered by the expensive and time consuming process of connecting to the grid.

In October 2012 the China State Grid Corp. exempted distributed solar projects from grid connection costs.

The National Development and Reform Council (NDRC) also waived the requirement for distributed power projects to gain approval, regardless of their size. They now only need to notify the NDRC, significantly cutting the time and paperwork for households and small businesses interested in solar.