However, China’s photovoltaic market lags far behind the development of the photovoltaic industry, making the latter face big potential risks.

At present, China has more than 500 photovoltaic enterprises including six listed on overseas stock markets, according to Wu Dacheng, head of the Renewable Energy Project Office of the National Development and Reform Commission. The six listed solar energy companies are Suntech (NYSE: STP), JA Solar (NASDAQ: JASO) Rene Solar (AIM: SOLA), Solarfun Power (NASDAQ: SOLF), Trina Solar (NYSE: TSL), and Canadian Solar (NASDAQ:CSIQ). Last year, the solar cell production capacity in the mainland of China amounted to 1,200 MW, soaring 280% over the previous year, and solar cell assembling capacity hit 2,000 MW and output, 600MW.

Meanwhile, the country’s polysilicon material industry has developed rapid in the past three years. According to Zhao Yunwen, director of the Photovoltaic Branch of the China Renewable Energy Association, China’s polysilicon output was 80 tons in 2005 and 290 tons in 2006, and it is expected to exceed 1,000 tons in 2007 and top 10,000 tons by 2010.

However, on a sharp contrast to the robust expansion of the production capacity, the overseas solar energy market is unsatisfactory. At present, the German market, the largest solar cell consumer in the world, is bearish, and other markets in the world grow slowly. Both have brought big risk China’s photovoltaic industry, which photovoltaic industry heavily depends on overseas market, said market analysts.

About 95% of solar cell products made in China are for export, said Shi Dinghuan, former secretary general of the Ministry of Science and Technology.

In the CNEC International Solar Energy and Photovoltaic Conference held in Shanghai on May 10, the industry circle thus advocates the Chinese government to offer subsidies and incentives to solar energy- based electricity generation so as to stimulate the demand on the domestic photovoltaic market and guarantee the development of the photovoltaic industry.

China has so far issued the Renewable Energy Law and related Implementation Rules, but the detailed rules and policies are not fully conform to the industry target. So the photovoltaic market develops slowly in China.

PIN/ Reed-Electronics.Com