China's investment in solar power generation is expected to reach 250 billion yuan ($39.5 billion) during the 12th Five-Year Plan (2011-15), with the industry expected to employ 500,000 people, according to a development plan released by the National Energy Administration on Sept 12.

That means that China's solar power companies will be supported by the domestic market, amid obstacles in the solar market in the United States and Europe, the Beijing Times reported on Sept 13.

The plan was welcomed by solar power companies because it means that overseas companies will now focus on how to enter China, instead of accusing Chinese firms of dumping products, the newspaper quoted Gao Jifan, the founder of Trina Solar Ltd, as saying.

According to the plan, China will add 10 million kilowatts of installed capacity of solar photovoltaic power stations, 1 million kW of installed capacity of solar light and heat power generation systems, and 10 million kW of distributed photovoltaic power generation during the 12th Five-Year Plan.

China is a major producer of solar energy products, most of which are for export. The global solar cells industry had an annual production of 16 million kW in 2010, of which China accounted for 10 million kW.

The total installed capacity of the global photovoltaic power generation industry reached 40 million kW in 2010, mainly in Germany, Spain, Japan and Italy.

China has a large land area suitable for solar power generation. The Qinghai-Tibet Plateau, the Loess Plateau and the Inner Mongolia Plateau have great potential for large-scale exploitation of solar energy resources.