China has raised its 2015 target for solar-electricity capacity, giving a shot in the arm to its solar companies, many of which are struggling due to industry overcapacity, slow global demand and overseas trade disputes. China's State Council, or cabinet, in a statement dated July 4 but posted Monday said installed capacity for solar electricity would reach more than 35 gigawatts by 2015, and would grow by about 10 gigawatts a year between now and then. China's previous target was 21 gigawatts, and its installed capacity in 2012 was about 7 gigawatts.

The move is positive for Chinese solar companies, who will become eligible for more domestic projects, and who together provide more than half the world's solar panels. In recent years they have been hit by falling prices of solar equipment, fierce competition and a slowdown in financing for solar projects in Europe and the U.S., both of which have been among China's largest customers.

The State Council acknowledged problems in the sector and reiterated several wide-ranging support measures, including promoting small-scale solar power generators, eliminating outdated production capacity, making subsidies more efficient, allowing access to cheap land and relying on "market forces" to encourage mergers and acquisitions.