China to Become Top Photovoltaic Solar Energy Market in 2012

China's domestic demand for photovoltaic solar power is expected to nudge 5GW by the end of 2012, jumping over Germany and Italy to become the world's number one.

PV market, according to the latest projections by Solarbuzz, a market research company, China Securities Journal reported Wednesday.

A demand of 6 GW is also possible for this year, said the company. The year 2011 saw China climb to the third largest PV market with a national demand of 2.75 GW, rocketing 470 percent year-on-year.

The austerity policy in Germany and Italy will likely bring uncertainty to their demand for photovoltaic power in 2012, said the report.

In contrast, China's active measures including an on-grid electricity pricing mechanism and government subsidization have primed its PV market development.

More incentives such as a renewable energy quota system and distributed generation formula will be introduced later this year.

The cost of building a photovoltaic power system in China is among the lowest globally and still on the decline, the report said.