He said the cost of electricity transmission in western China, for example, is high because of the long distances involved. Distributed power plants therefore have advantages by saving costs.
China's PV solar market will develop at an annual growth rate of about 20.2 percent over the next few years, Wang predicted. Meanwhile, the share of distributed solar power generation among the overall solar market will grow from 30.3 percent in 2011 to 45.24 percent in 2015.
"The current overcapacity problem in the global PV solar market is temporary, lasting just a few years," he said. "The demand in the market will grow by a large extent after about five years."
The Chinese government is not the only one supporting the PV industry across the world.
The US government provides tax breaks for homes or businesses supporting the domestic solar PV market, according to a report from GlobalData, an international business intelligence organization that focuses on energy, resources and healthcare sectors.
It said between 2009 and 2011 the US Treasury provided 3,731 grants for solar power projects, amounting to a total of $1.56 billion, for the installation of solar power projects equivalent to 1,290.64 megawatts.
The US government has also increased spending on PV in federal buildings and the defense sector, investing in PV equipment for military power supplies and the government sector, the report said.
Currently, the solar PV module market in North America is dominated by the US, which accounted for more than 85.3 percent of regional additions in 2011.
Chinese company Trina Solar Ltd is working on expanding the Canadian market by investing in the area and cooperating with local partners.
Many foreign experts believe Chinese companies will survive the crisis.
"It's easier for Chinese companies to beat the competition," said Buttgereit. "In the EU it is impossible to get loans from banks because of the bad economy there."
He said the debt crisis and weak economy is a much tougher issue in Europe than PV industry problems and some companies will not survive - a natural outcome of market economics.
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