China plans to invest $278 million in solar power expnasion

In an effort to build up more solar power, a China company has set a 1 gigawatt cell expansion plan for solar cells. The company, China Sunenergy, plans to invest $278 million in the project, according to Reuters. Partial funding will come from China Electric Group Corp.

The first patch of solar cells is expected to be commercialized during the first half of 2012, according to the company. The project will focus on producing newly developed Quasar cells, a product developed by China Sunergy, which has shown to have an efficiency rate of 18.55 percent on average.

Solar companies are competing with each other by increasing production capacity up and the price of solar equipment down, Reuters reports. Shares of China Sunergy closed at $2.10 on the Nasdaq Friday.

Stephen Cai, CEO of China Sunergy, said the company believes that solar power has a promising future.

"We are confident that this 1 (gigawatt) production capabilities and highest efficient Quasar cells will provide us the scale and technological edge to be better positioned for industry growth and to become an industry leading player," Cai said.