China today announced plans to massively increase its solar capacity five fold,to reach 35 gigawatts by 2015. Analysts see the move by the world’s biggest maker of solar panels,as an attempt to support an industry faced with declining profits, slowing exports as well as a supply glut. 10 gigawatts of solar-power capacity a year will be added up to 2015,to meet the ambitious 35 gigawatt target,according to a statement from the State Council posted on the central government’s website today. This bold move to boost the domestic supply,should help reduce the Industry's reliance on exports as well as dramatically reduce the oversupply,which resulted in a 20 percent plunge in the average price of solar panels last year, However this major expansion is not expected to have a adverse effect on prices again. "While the Chinese government is determined to boost the domestic market, it is not sufficient to eliminate oversupply totally,” said Wang Xiaoting, a Beijing-based analyst at Bloomberg New Energy Finance. “Panel prices will stay stable in 2013.” China will also provide credit support to profitable manufacturers and encourage restructuring as well as overseas investment, offering tax breaks to solar companies that acquire others, merge or reorganize their operations, the State Council added.