UPDATE 1-INTERVIEW-China's Solargiga to lift capacity

* Solargiga to spend 1.5 bln yuan in 3 years to lift capacity

* Company expects improved outlook for solar market in 2010

* To boost capacity for ingots, wafers and modules

HONG KONG, Oct 29 - China's Solargiga Energy Holdings Ltd <0757.HK>, which makes ingots and wafers used in solar products, plans to spend 1.5 billion yuan ($220 million) over the next three years to more than double its capacity.

The company, which posted a loss of 107 million yuan for the first nine months of this year, expected the outlook for the solar industry to improve in 2010, its chief financial officer Jason Chow told Reuters on Thursday.

"We're looking at a better year in 2010, much better than 2009," Chow said.

China's second-largest provider of monocrystalline silicon ingots and wafers expects to boost capacity to one gigawatt by 2012, up from 400 megawatts by end of 2009.

Encouraged by cash perks for solar projects in Europe and in China, the company aims to expand its solar module-making operations despite an oversupply of modules in the global market.

Solar module makers struggle with depressed prices because of overcapacity and a fall off in demand as funding for solar projects dried up early this year. But like many in the sector, Solargiga is gearing up for a bigger slice of the growing solar market in China, which offers generous subsidies for solar projects.

In late March, the Chinese government announced a solar incentive programme involving solar systems installed on roofs. That was followed by a second and larger programme in July that offered a cash subsidy for ground-mounted solar systems.

Solargiga's acquisition in June of Taiwanese solar module company Kinmac for about $38 milllion should support the company's bid to expand its module-making business, Chow said. The deal is awaiting approval from the Taiwanese authorities.

Solargiga has 25 megawatts in module capacity in China, which it plans to double in 2010. Its acquisition of Kinmac, once completed, will bring its total capacity to 75 MW.

The solar company has applied with the Taiwan Stock Exchange to issue Taiwan Depositary Receipts involving 100 million shares to boost its presence in Asia and raise cash for its projects, Chow said.

Proceeds from the listing will be used to fund the company's module-making business, he said.