Solar energy prices are falling quickly and this source of energy is becoming a more important in countries across the world. Within China a range of policies have been implemented to encourage the solar industry. There is therefore an open question as to whether industrial policy in China has been successful in fostering innovation and growth in the solar industry. In this paper we examine whether city demand, supply and innovation subsidies lead to increased capacity, production and entry of solar firms. We also look at whether these different industrial policies are associated with an increase in solar patenting.