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The audience of the shoulder-shoulders, the scalpers that sold the tickets, the 2011 International Solar Photovoltaic Engineering (Shanghai) exhibition that opened yesterday was very lively. More than 2,000 exhibitors have packaged all 13 venues in the New International Expo Center, and even exceeded the previous year's auto show. After experiencing the industry downturn in 2008, and surpassing the expected demand for continuous recovery in 2009 and 2010, the investment boom of the photovoltaic industry is once again burning. Entering 2011, the hot market in this industry continues. According to the reporter, in addition to the traditional domestic photovoltaic giants, some companies engaged in building materials, cement, printing and dyeing, clothing, luggage, leather and other industries have also participated in the past. This can not help but worry that the photovoltaic industry born of "light" will not "see the light" in the shadow of overcapacity? Thousands of troops rush into the photovoltaic industry. The reporter saw at the exhibition site that the roof of a solar huts is covered with glass. The interior of the glass is also embedded with solar panels, which can shield the wind and rain and emit a steady stream of green electricity. According to reports, the roof area is about 10 square meters, and under the natural conditions of Shanghai, it can generate at least 1,100 degrees per year. However, the staff also told reporters that their company was engaged in building materials business before. Due to the commonality in the installation process, it is now moving into the field of photovoltaic construction. In fact, the solar photovoltaic industry chain is very long, including polysilicon raw material production, silicon rods, silicon ingot production, solar cell manufacturing, component packaging, photovoltaic product production and photovoltaic power generation systems. Under the prosperous industry, in addition to the construction enterprises that carry out photovoltaic integration construction, many enterprises that originally seemed to be irrelevant have also participated in different angles. For example, Bosideng, a leading domestic down apparel industry, entered the field of polysilicon manufacturing at the end of last year. It is reported that Bosideng will jointly invest 6 billion yuan with Jiangsu Kangbo to build a high-purity silicon production line with an annual output of 6,000 tons in Yangzhou. Internal and external pinch attacks need to be rational. Why is the PV industry so attractive? Profiteering, short supply, and low thresholds are the simple understanding of the photovoltaic industry. Therefore, under such a simple understanding, various capitals have begun to devote themselves to this new industry. According to the reporter, Jiangsu and Zhejiang are the "gemini stars" of the photovoltaic industry. Due to the large investment from the previous government, Jiangsu has a large number of large-scale enterprises. In comparison, Zhejiang is characterized by intensive private capital, which is likely to cause small scale and hot money speculation. Therefore, under the circumstance of capital exertion, some small private enterprise investments are actually very short-sighted. They just take the mentality of where to invest and where to invest, and they are not related to product quality and technology. For example, in Zhangzhou, Zhejiang, some small-scale photovoltaic companies that started with cement and printing and dyeing were eventually eliminated by the market due to lack of core competitiveness. However, industry experts also pointed out that many bosses who have made traditional industries have entered the photovoltaic industry, which is also a last resort. On the one hand, they have accumulated a certain amount of capital, but in the process of development, traditional industries have encountered problems such as land, environment, and labor costs. The market has forced them to look for more potential industrial investment. On the other hand, local governments at all levels have Attracting photovoltaic companies to settle in, it has also led to all kinds of investment, including various preferential policies including preferential on-grid tariffs, incentives and land supply. Therefore, in the case of such internal and external pinch, investment needs more rationality. Experts suggest pulling domestic demand as soon as possible. In fact, the overcapacity of the photovoltaic industry has already appeared in 2009, but domestic investment in the photovoltaic industry continues to climb and reached a new peak this year. In this regard, Zhao Yuwen, vice chairman of the China Renewable Energy Society and director of the Photovoltaic Special Committee, told reporters that the export market grew very rapidly during the same period, temporarily dissolving the concerns of overcapacity. However, in the future, China's PV industry will be on the track of sound development. It also needs the government to introduce key policies to promote the domestic demand market. According to preliminary statistics, last year, the world's new PV installed capacity was 15-17GW, and China's production accounted for 8GW. However, only 5% of the products, which are about 400MW, are used in China, and the other 95% of the products are exported to foreign markets, especially for the European market. However, major European countries have successively introduced policies aimed at curbing the installation of photovoltaic power generation equipment, including substantial reduction of subsidies, cancellation of tax incentives, and so on. At the same time, the United States launched a 301 investigation into China's new energy industry. These may cause the growth of the photovoltaic market in the future to slow down or even decline. Zhao Yuwen believes that from the perspective of the long-term development of the photovoltaic industry, it still depends on the domestic market; among them, the issue of solving the on-grid tariff is the key. He called for China to develop into a new energy source, especially a photovoltaic powerhouse. It is also necessary to learn from this model and introduce the "On-grid Electricity Price Law" as soon as possible.