In February 2005, China passed a groundbreaking law to promote renewable energy.

Implementation of the law started January 1, 2006. The law provides a feed-in tariff for some technologies and establishes grid feed-in requirements and standard procedures. It establishes cost-sharing mechanisms so the incremental cost will be shared among utility consumers. It also creates new financing mechanisms and supports rural uses of renewable energy. The law also provides for a long-term development plan, R&D, geographic resource surveys, technology standards, and building codes for integrating solar hot water into new construction.