Solar power manufacturers in China are receiving tax rebates from the Beijing government to help support its bloated photovoltaic industry.

With demand still weak local manufacturers will be refunded 50 per cent of the value added tax until December 2015.
The country's industry is looking to consolidate following international trade rows, over capacity, and leaving many Chinese firms with huge debts.

Over the past few years, advanced and developing nations have been looking to increase the use of renewable energy sources.

Chinese manufacturers were hoping to tap into the market and emerged a global force in the sector.

But a sharp decline in prices, coupled with slowing demand, has hurt global solar panel makers and Chinese firms have also borne the brunt.
The US and European panel makers have blamed Chinese firms for playing a big role in that, say industry experts.

They have accused the Chinese companies of flooding the market and of selling the panels below fair price, a practice known as "dumping".

Prompted by the rising concerns over pollution levels in the country, the Chinese government has been trying to boost domestic demand for solar panels.

With the domestic market being expanded, China's production overcapacity can not be fully digested and some manufacturers must be eliminated, analysts have pointed out, with the Chinese industry now consolidating.

PVCompare Team
(Source: BBC)