The PV equipment costs Ruhai 14 yuan ($2.2) for every kilowatt of power generated, four yuan more than the costs paid by enterprises, as they are subsidized by the government.

"If I can receive subsidies of 0.4 to 0.6 yuan per kilowatt, I can recoup my investment within eight years," Ruhai said, adding that the return rate is expected to be 9.3 percent, much higher than a bank interest rate.

Ruhai's ambitions go far beyond illuminating one house, however. He said his goal is to promote household PV systems across the country.

Electricity generated by distributed PV plants now accounts for less than one percent of China's total PV generation, compared with some 70 percent in Germany and 80 percent in the United States.

"There is great market potential in household PV systems," Ruhai said.

Distributed PV generation refers to scattered solar power plants installed in neighborhoods that provide power to nearby homes in a more convenient and economical manner than conventional power plants.

The central government said last December that it will encourage the application of distributed PV power generation in local communities.

Solar power, a promising form of green energy, may provide an alternative for the government as it vows to control fossil energy consumption. At the same time, the development of household PV system may also aid PV equipment manufacturers.

China's PV industry, with the world's largest capacity, is facing a sharp decline in demand in the wake of anti-dumping and anti-subsidy measures implemented abroad.

The country's PV industry should shift to the domestic downstream power generation sector to offset their export losses, said Meng Xiangan, secretary-general of the China Renewable Energy Society.

Along with domestic PV manufacturers, residents of China's southern provinces may be able to benefit by installing household PV facilities, as the public heating enjoyed by northerners does not exist in South China, despite cold winters there.

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