BEIJING - China's central government has allocated another 7 billion yuan (1.11 U.S. dollars) to subsidize domestic solar photovoltaic (PV) demonstration projects, according to an announcement by the Ministry of Finance (MOF) on Tuesday.

Together with the 6 billion yuan earmarked in the first half of 2012, China has allocated a total of 13 billion yuan to boost its domestic PV market this year. The funds will be pumped into new projects designed to generate 5.2 gigawatts of solar power, data from the MOF showed.

A total of 149 demonstration projects initiated in this round are giant schemes with an installed capacity of no less than 10 megawatts each. They add up to a total capacity of 2,550 megawatts, or 92 percent of the overall scale for this round, the ministry said.

The MOF is also encouraging investment in smaller, independent PV power stations by offering them higher subsidies per watt, data showed.

The independent power stations receiving funds this time are designed mainly for islands or remote areas without electricity. The projects will benefit about 280,000 households with no access to power, said the MOF.

All demonstration projects are expected to complete by June 2013, followed by project inspection and assessment.