The hiking price of oil pushes the new energies such as solar energy to the historically high. People are more concerned about fuel ethanol, solar water heater and solar battery industry. Solar polysilicon especially shows a bright prospect.

Today the markets in demand for solar battery mainly concentrate in the USA, Germany, Japan, Korea and Spain; those are in close relationship to the supporting policy. Meanwhile, the supply of high purity crystalline silicon is dominated by few giants such as Hemlock, Wacker and Tokuyama. Among the application fields of solar energy, China grasps the mature technology in solar water heater only; however, China has the same activity and enthusiastic as any other countries in exploring and developing solar PV industry.

In 2006, the output of solar battery in China was 438MWP, accounting for 17.1% of the world total. In 2007, the output of solar battery in China surpassed Japan and the USA, reaching 1088MWP, became the biggest producer in the world.

In term of 11 tons or more polysilicon producing 1MWP solar battery, China's self-produced polysilicon can only satisfy the production of 80MWP solar battery, but the solar battery produced in China was 1088MWP in 2007, which means the polysilicon for the rest of 1008MWP was rely on exports or other channels. Meanwhile, the price of polysilicon in China keeps rising, from 25 to 40 USD per kilogram in 2001- 2003, to 200 USD per kilogram in 2006; its average price reached 300 USD per kilogram in 2007. In late 2007 or early 2008, price of polysilicon hit a historically high at 400 USD per kilogram.

In correspondence to the hot investment plan of solar polysilicon and the price trend, Chinese manufacturers generally have the following problems: lacking of core technology, low-level repetitive constructions and incomplete industry chain mix etc. Today, parts of the key equipments still rely on imports. For example, casting furnace, wire cutting machine tool and PECVD etc.