(Yicai Global) Oct. 11 -- Runjian’s shares surged by the daily limit after the Chinese operator of communications and energy networks set out plans to invest CNY1.8 billion (USD281 million) building rooftop solar power plants in southern China.

Runjian’s stock price [SHE:002929] closed up 10 percent today at CNY31.90 (USD5).

Runjian penned an agreement with the government of Yongfu county, under the jurisdiction of Guilin city, a well-known tourist destination in Guangxi Zhuang Autonomous Region, to build distributed solar power plants atop buildings, as part of a pilot program by the Chinese government to develop photovoltaic electricity in selected areas.

The project is expected to deliver total generating capacity of about 409 megawatts upon completion, the Nanning, Guangxi-based firm said in a statement this morning.

Runjian said the project will use the roofs of government agencies and public buildings, including schools and hospitals, as well as factories and rural homes. The aim is to use half of government agency rooftops, and there will be no ceiling on the investment quota.

The company will start the project with the support of Yongfu county, and plans to complete construction work on currently available rooftops within a year, it added.

Covering 2,806 square kilometers, the county has plenty of sunshine. It was included in the National Development and Reform Commission’s county-wide rooftop distributed photovoltaic development pilot list at the beginning of last month, Runjian’s statement added.

A total of 676 counties in China were selected in the list. Based on the average construction scale of 200 megawatts per county, the total installed capacity of the projects may exceed 135 gigawatts. The selected regions will also become leaders in developing distributed rooftop solar power plants in China, accumulating experience for larger-scale application across the country.

Editor: Tom Litting