According to the news released by the government of Spain, the world’s second largest producer of solar power has awarded subsidies to planned solar power plants with a total generating capacity of 502 MW, quite enough to supply 125,000 homes.

While talking to reporters, the Industry Ministry said, “We had completed the fourth round of bidding for photovoltaic (PV) projects scheduled for 2009, which will be entitled to receive "feed-in" tariffs of up to 340 euros ($505.9) per megawatt-hour for 25 years.”

Feed-in tariffs are projected to make solar and other renewable energy technologies highly aggressive with conventional energy, and compare with wholesale power rates of about 32 euros/MWn in the country.

In 2008, Spain was the world’s hottest solar PV power market when plants were built in a rush to take advantage of a kind but high price subsidy plan which completed in September last year.

According to the Ministry, Spain now has 3900 MW of PV plants either working or under-manufacture. Solar plants have generated around 2.2% of national electricity in the month of November this year.

Photovoltaic panels convert solar energy directly into electricity, while solar-thermal plants, which use heat from the sun's rays to drive a generator, have a different subsidy scheme.