Photovoltaic power generation is a technology that utilizes the photovoltaic effect at semiconductor interfaces to directly convert light energy into electrical energy. The key component of this technology is solar cells. After being connected in series and packaged for protection, solar cells can form large-area solar cell modules, which are combined with power controllers and other components to form photovoltaic power generation devices. The advantage of photovoltaic power generation is that it is less restricted by geographical conditions, as sunlight shines on the earth; Photovoltaic systems also have the advantages of safety and reliability, no noise, low pollution, no need to consume fuel, on-site power generation and supply without the installation of transmission lines, and short construction period.

Photovoltaic power generation is based on the principle of photovoltaic effect, using solar cells to directly convert solar energy into electricity. Whether used independently or connected to the grid for power generation, photovoltaic power generation systems mainly consist of three parts: solar panels (components), controllers, and inverters. They are mainly composed of electronic components and do not involve mechanical components. Therefore, photovoltaic power generation equipment is extremely refined, reliable, stable, with a long lifespan and easy installation and maintenance. In theory, photovoltaic power generation technology can be used in any situation that requires power, from spacecraft to household power sources, from megawatt level power plants to toys, photovoltaic power is everywhere. The component of solar photovoltaic power generation is solar cells, including monocrystalline silicon, polycrystalline silicon, amorphous silicon, and thin-film cells. Single crystal and polycrystalline batteries have the highest usage, while amorphous batteries are used for small systems and auxiliary power supplies for calculators.

The efficiency of domestically produced crystalline silicon batteries is around 10% to 13%, while the efficiency of similar foreign products is about 18% to 23%. A solar panel composed of one or more solar cells is called a photovoltaic module. Photovoltaic power generation products are mainly used in three aspects: first, to provide power for non electric field integration, mainly for the daily life and production of residents in non electric areas, as well as microwave relay power, communication power, etc. In addition, it also includes some mobile power sources and backup power sources; The second is solar powered daily electronic products, such as various solar chargers, solar street lights, and solar lawn lights; The third is grid connected power generation, which has been widely promoted and implemented in developed countries. China's grid connected power generation has not yet started, but some of the electricity used for the 2008 Beijing Olympics was provided by solar and wind power.

The photovoltaic industry, abbreviated as PV (photovoltaic). 76% of China's territory has abundant sunlight, and the distribution of solar energy resources is relatively uniform; Compared with hydropower, wind power, nuclear power, etc., solar power generation has no emissions or noise, mature application technology, and is safe and reliable.

In addition to large-scale grid connected power generation and off grid applications, solar energy can also be stored through various methods such as pumping, superconductivity, batteries, hydrogen production, etc. The combination of solar energy and storage can almost meet China's stable energy needs in the future. Solar energy is the cleanest, safest, and reliable energy source in the future. Developed countries are making the development and utilization of solar energy a major part of their long-term plans for the energy revolution. The photovoltaic industry is increasingly becoming another explosive development industry internationally, following the IT and microelectronics industries. The best way to utilize solar energy is through photovoltaic conversion, which utilizes the photovoltaic effect to directly generate electricity by shining sunlight onto silicon materials. The photovoltaic conversion industry chain formed by the application and development of silicon materials is called the "photovoltaic industry", which includes the production of high-purity polycrystalline silicon raw materials, solar cell production, solar cell module production, and the manufacturing of related production equipment. On August 19, 2015, the Ministry of Industry and Information Technology released data showing that China's photovoltaic industry increased by 30% year-on-year in the first half of the year. At the same time, product prices have remained stable with an increase, and business operations have generally improved. The top four domestic polysilicon companies have achieved full production, and the average gross profit margin of the top 10 component companies exceeds 15%. The average net profit margin of the 29 component companies listed in the photovoltaic manufacturing industry standard announcement has increased by 6.5 percentage points year-on-year.