The capacity of new PV power stations to be built in 2014 will be increased from the previous target of 10 gigawatts (GW) to 12 GW, the National Energy Administration said.

The administration is now consulting with local authorities on the new proposal.

Decentralized solar power stations, such as those installed in private homes, public buildings, with account for eight GW of the new capacity, according to the proposal.

China has an excessive supply of PV products in the domestic market after demand from major export destinations -- the European Union and the United States -- faltered due to trade rows.

In July, the State Council, China's cabinet, announced measures to boost the sagging PV sector, including promoting distributed PV projects, eliminating outdated capacity and encouraging industrial restructuring and technological progress.

The State Council said new installed PV power capacity should stay around 10 GW annually between 2013 and 2015, and total PV capacity should exceed 35 GW by the end of 2015.