The nine provinces of the West and North-West of China are among poorest in the country. The rural parts of the region are remote and have a very low population density. Rural people work as herders and have little cash income. They may barter or sell an animal when money is needed. Lighting is provided by kerosene, butter lamps and candles, because few people have
access to grid electricity.

The China Renewable Energy Development Project (REDP) was set up in 2001. One of the main aims of REDP was to promote the installation of photovoltaic (PV) solar-home-systems in remote off-grid homes. Solar-home-systems (SHS) are stand-alone electrical systems which use a PV module to provide power. In the REDP programme a typical SHS supplied two lights and was supplied in a metal carry-case so that it was portable. Larger systems could power radiocassettes, TVs and DVD players.

REDP operated with approved suppliers (about 80) and participating wholesale companies (32), which had to meet increasingly strict standards of product quality, service and management, in order to be approved by the programme. Participating companies were paid a subsidy for each system sold, provided that they passed the regular checks of REDP. As the quality standards were increased, the subsidy was increased from $1.50/Wp to $2.00/Wp (about 25% of the final sale price).

402,000 solar home systems were installed through the REDP-subsidised programme between 2003 and 2008, with a total capacity of 11.1 MWp (or an average of 28 Wp per system). Each SHS benefits an estimated four people per household, or a total of 1.61 million people for the programme as a whole. The average sale price was Yuan 1,221 (£88) in 2007, similar to the price of a yak. For users, the main benefit of the REDP programme was brighter, cleaner lighting, for study, work and recreation. Use of radio-cassettes and mobile phones, for entertainment and to keep in touch with the outside world, was also greatly appreciated.

The REDP programme supported the rapid growth of the PV industry in China, and improved the quality of production while keeping costs low. It greatly expanded the market for solar home systems, and supported the development of a network of suppliers, wholesalers and retailers. The model of providing market-driven incentives was a key factor which enabled the programme to work effectively, and this model is now being used by several other donor-funded programmes in China. The REDP programme will close at the end of June 2008 as planned, and the China Photovoltaic Industry Association is being established to continue the work.

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The Ashden Awards for Sustainable Energy