UPDATE 1-Solarfun to build 100 MW solar power plant in China

* Says wholly owned unit signed deal with Jiayuguan City

* To build module production facility to support project

Dec 4 (Reuters) - Chinese photovoltaic cell maker Solarfun Power Holdings Co Ltd SOLF.O said one of its units had signed an agreement to build a 100 megawatt solar power plant in China.

The company said its wholly owned subsidiary, Jiangsu Linyang Solarfun Co Ltd, had signed an agreement with the government of Jiayuguan City, Gansu Province, to build the plant.

Solarfun also said it would construct a module production facility in Jiayuguan City to support the project.

Earlier this year, China, the world’s top greenhouse gas polluter, had launched a long-awaited plan to offer subsidies for large solar power projects to catch up in a global race to find alternatives to fossil fuels.

Since China announced the incentive, domestic solar power producers, including LDK Solar Co Ltd LDK.N, Suntech Power Holdings Co Ltd STP.N and ReneSola Ltd SOLA.L unveiled plans to build big solar power plants in the country.

Friday's news also comes a month after several Chinese solar companies including Solarfun, Canadian Solar Inc CSIQ.O and China Sunergy Co Ltd CSUN.O signalled an uptick in demand for green energy systems after a dismal year.

Solarfun shares, which have more than tripled from a March year-low, closed at $6.86 Thursday on Nasdaq. (Reporting by Adveith Nair in Bangalore; Editing by Aradhana Aravindan) ((; within U.S. +1 646 223 8780; outside U.S. +91 4135 5800; Reuters Messaging: