China aims to reduce the cost of domestic solar power to 0.8 yuan per kWh by 2015 and 0.6 yuan per kWh by 2020 and increase production of solar panels and materials, the Ministry of Industry and Information Technology announced on Friday.

According to the ministry's Solar Industry 12th Five-Year Plan (2011-2015), the cost of solar panels in China will drop to 7,000 yuan ($1,111) per kW by 2015 and 5000 yuan per kW by 2020.

The plan requires China's leading polysilicon manufacturers to reach a 50,000-ton production capacity and leading solar panel makers to reach 5 gigawatts (gW) by 2015.

China will further help solar companies increase their annual sales, with at least one company reaching 100 billion yuan in sales and 3 to 5 companies reaching 50 billion yuan in sales by 2015, according to the plan.

In terms of solar technology, China aims to increase the conversion efficiency ofmonocrystalline sillcon solar cell to 21 percent, polysilicon cell to 19 percent and amorphous silicon cell to 12 percent by 2015, the plan said.

Eighty percent of solar equipment and auxiliary materials will be produced domestically, according to the plan.