I had lunch today with a friend in the solar industry, who noted that the Chinese government is in the final stage of writing its policy to spur demand-side projects. Unfortunately, the Beijing technocrats aren't moving as fast as the market would like (they rarely do) and the mix of subsidies and tax breaks will take awhile to kick in. "Just like Chinese medicine," my friend said. It takes longer, but it will make you healthier. 

Of course, the industry probably wants a whiff of cocaine -- and the accompanying short, satisfying jolt of energy to get things moving.  But that ain't gonna happen. Beijing envisions groups of solar companies coming together to form JVs with power companies that would then invest in demand-side projects, which would be eligible for direct subsidies and tax breaks.

A few annoucements will be made this year, but don't let the head fakes fool you. The real results won't be seen till next year or the year after. Just like as with Chinese medicine.