Trina Solar (TSL), Yingli Green Energy (YGE) and Suntech Power (STP) are three leading China clean-tech companies that are set to outperform this quarter.

All these companies are poised to grow as China's investments in renewable energy increased to $11.48 billion in 2009 from $163 million in 2002, representing a CAGR of 84%. Investments were mainly targeted toward wind and solar photo-voltaic projects. Moreover, investments are forecasted to grow to around $42.25 billion in 2015.

Another player, China Sunergy ( CSUN), a manufacturer and seller of solar cells, reported its first-quarter results on April 30. Revenue was $104.3 million, up 181.9% year over year. Earnings stood at $7.11 million or 18 cents per share, surpassing consensus estimates of 10 cents per share.

Subsequently, the stock gained 6% in trade, closing at $4.80 on Friday. The stock has surged 17% in the last two trading sessions. It is trading at an attractive forward PE of 11.57, indicating further upside in the near future.

We reckon that this growth rate will be sustained and the companies involved in this business will be major beneficiaries as a result of this surge. In addition to the above-mentioned stocks, we present another four that are leveraged to this growth story and could be multi-baggers in the future. They include:

Solar wafer manufacturers ReneSola ( SOL - Get Report) and LDK Solar ( LDK), and manufacturer of PV solar cells JA Solar Holdings ( JASO) and Solarfun Power ( SOLF).

ReneSola, JA Solar and Trina Solar are expected to report their results on May 10, May 11 and May 25, respectively.

According to analysts polled by Bloomberg, ReneSola is expected to report first-quarter 2010 revenue of $196.0 million, representing a year-over-year growth of 83.0%. Earnings are estimated at 13 cents per share compared to a loss of 22 cents per share a year ago.

JA Solar is expected to report revenue of $265 million, representing a year-over-year growth of over 600%. Earnings are forecasted at 18 cents per share compared to a loss of 18 cents per share a year earlier.

Trina Solar's revenues are anticipated to be $323 million, representing a year-over-year growth of 145%. Earnings are estimated at 61 cents per share compared to a loss of 42 cents per share during first-quarter 2009.

China Heading in Right Direction

According to a report released by GBI Research titled "Renewable Energy Investment Opportunities in Emerging Economies," Financial investments in renewable energy in emerging countries surged from $1.76 billion in 2001 to $65.86 billion in 2009, growing at a CAGR of 57.6%.

China's ministry of Finance announced the Golden Sun Initiative in July last year in order to promote renewable energy generation that could create a strong domestic market for its solar cell manufacturers.

China is looking at installing 10 gigawatts of solar energy capacity by 2020. According to a GTM Research report, solar capacity could jump to 1 gigawatt or more by 2011, provided the government speeds up approval and distributes funds quickly. Currently, the capacity stands at 600 megawatts.

Regulatory and financial support offered by governments is a major driver for investments in the renewable energy sector. In the case of China, the sector could grow even more, if the government sets fixed, preferential tariffs for the energy source, analysts say.

This procedure, which is employed in several EU countries, compels power grids to pay more for electricity made from renewable sources than they do for fossil-fuel-based energy. This fixed-fee system would also give investors a more clear picture of future revenue than the case-specific regime currently followed.

"The introduction of a fixed and preferential solar-tariff system would have a drastic impact on China's solar sector," Ren Dongming, vice director of the Renewable Energy Center, which is part of the National Development and Reform Commission, China's economic planning agency told The Wall Street Journal. "Foreign and private investors would flock in," he added.