China is giving a generous tax break to businesses which make solar power products in the country, its Ministry of Finance announced over the weekend.

The tax break which began yesterday (1 October) will last until 31 December 2015, reported Chinese news agency Xinhua.

Firms which sell solar panels they have manufactured themselves will get a 50% refund on their VAT.

It follows a number of solar spats China has had with the EU and the United States over its cheap solar panels. Although the differences have been mostly patched up, the resulting drop in demand from these markets is affecting the Chinese solar market.

Earlier this year the Chinese Government announced plans to more than quadruple its solar generating capacity to 35GW by the end of 2015.