China-based solar firms have been hoping that the China market will overtake Germany as the biggest solar market in the world. However, industry sources pointed out the 5GW of installation demand is for the government to secure the growth of its domestic solar industry. In addition, only a few China-based firms benefit from such projects.

Industry sources have been optimistic about China's domestic solar market due to strong support from the government through the 12th Five-Year Plan. China's government also announced a universal feed-in-tariff (FIT) rate in 2011 to eliminate some obstacles to the commercialization of solar installations. Industry sources in China noted that 2012 China solar installation demand will likely reach 5GW.

However, international solar firms in China pointed out that the projects are likely to only benefit China-based firms. The 5GW demand is likely to be strategic demand to maintain the growth of China-based solar firms, added industry sources.

Source:digitimes