The global financial crisis and the resulting drop in polysilicon, photovoltaic (PV) cells and module production, is forcing China to expedite government policies to spur domestic demand for solar energy products, according to several speakers at the 5th China SoG Silicon and PV Power Conference (5th CSPV), held in conjunction with SOLARCON China. Over 800 delegates to the conference heard calls for a renewed emphasis on government incentives and other policies to support the China is PV power industry, including a SEMI PV Group-led call for aggressive production and deployment goals for both domestic and export deployment.

Dinghuan Shi, Chairman of China is Renewable Energy Association acknowledged the significant impact the current economic crisis is having on the China solar industry. Reduced access to capital, consumer spending decline, and uncertainties and changes in government policies around the world, has seen orders for China poly, cells, modules and components cancelled and delayed. But Chairman Shi sees both opportunities and challenges in the current economic crisis. China has made impressive gains in silicon capacity, quality and waste management, thin film technology, and government support for renewable energy, said Shi. He applauded recent announcements by US President Obama and urged greater global collaboration and continued China government support, including reforms in electricity distribution.

Bohua Wang Deputy Director-General of the Department of Information Technology Industry, Ministry of Industry and Information Technology of the PRC, called the solar market a sunrise industry and called for two channels of development: new policies in support of the domestic market and a restructuring of the industry in support of manufacturing.

Xiaofeng Peng, Board Chairman, LDK Solar Energy High-Tech also called for greater government support, especially those that build upon China strengths in low cost production, science and technology, quality control, and innovation. As China is largest solar energy producer, 95% of LDK's production is currently for export. He also urged greater development for China is potentially immense domestic market, and also urged emphasis on emerging markets in Asia and Middle East.

Peng sees the China market getting stronger during this economic decline, taking advantage of lower raw material costs, greater availability of technical talent, and a heightened focus on quality control. He believes that consolidation will help the industry and, and like Internet businesses over the past 10 years, he sees a likelihood of new players and new business models emerging. He sees growing uncertainties in the market caused by the current economic collapse, especially a potential declining impact of metallurgical grade silicon, and a decline in market share by thin film technologies.

Samuel Yang, Vice General Manager of JA Solar said that now is the time to focus on internal strengths. He said that individual companies can't control the macroeconomic environment and likened the current market situation to the martial arts warrior who goes into mountains to develop his skills for coming battles. He said that China will remain the right venue for mass production of PV due its low costs, available technical and managerial talent, and supportive government.

China production roadmap

Mark Ding, president of SEMI China, also urged greater emphasis on the domestic market and unveiled a China production roadmap with specific goals for exports and domestic deployment. The roadmap was developed by the SEMI PV Group China Advisory Committee, representing leaders from China is PV industry including top cell and module makers, academia, and government. Currently less than 1 percent of the country's production capacity is being deployed in China. The plan, modeled on similar plans developed for the flat panel display industry, called for an accelerated adoption of PV in China power generation to reach global averages by 2020. The comprehensive plan calls for $3.396 billion yuan investment in PV, production goals by region, and employment levels reaching 3 million by 2020, up from the current 150,000. As part of the roadmap plan, a series of detailed policy recommendations will also be made to the government.