(Yicai Global) May 11 -- At the current rate of development, the cumulative installed capacity of photovoltaic and wind power will surpass thermal energy to become China’s largest sources of electricity by 2025, the chairman of the country’s biggest solar panel maker said.

The cost of photovoltaic power generation and electricity prices are set to halve by 2030 from what they are now thanks to scientific and technological innovation as well as further industrialization, Gao Jifan said at an industry forum yesterday.

The next 10 years will be a golden age for China's solar industry and output value may reach CNY10 trillion (USD1.4 trillion), he said.

But there are challenges to overcome, he added. While on the one hand, the US, the EU and India have imposed trade barriers on China's photovoltaic industry, on the other hand, a large amount of investment in the sector has led to greater competition and the risk of surplus production.

China's installed photovoltaic capacity has ranked first in the world for the past 10 years. In the first quarter, 33.6 million kilowatts of photovoltaic power were newly connected to the grid, up two-and-a-half times from a year ago, bringing the total to 425 million kilowatts, according to the National Energy Administration.

At the forum, five cities where many solar companies are concentrated, namely Changzhou, Huai'an, Yancheng and Suqian in eastern Jiangsu province and Xining in western Qinghai province, proposed to form a new ecology in the photovoltaic industry to better deal with overcapacity and international trade barriers.

Jiangsu province accounted for more than half of China’s solar panel output last year, with a value of CNY611.2 billion (USD88.1 billion). And Qinghao province has the highest clean energy installation ratio in the country at 91.2 percent, said Wang Weidong, member of the Standing Committee of the Qinghai Provincial Party Committee.

Editor: Kim Taylor