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Recently, the Ministry of Finance and the Ministry of Housing and Urban-Rural Development jointly issued the \"Implementation Opinions on Accelerating the Application of Solar Photovoltaic Systems in Buildings\" as well as a notice regarding the issuance of the \"Interim Provisions on the Management of Financial Subsidies for the Application of Solar Photovoltaic Systems in Buildings\". Implementation suggestions: I. Fully recognize the importance of solar photovoltaic applications in buildings: 1. Promoting the use of photovoltaic systems in buildings is an important aspect of advancing energy efficiency in construction ； 2. Promoting the application of photovoltaic buildings is a practical necessity for fostering the healthy development of China’s photovoltaic industry ； 3. Promoting the application of photovoltaic buildings is an important focus for implementing measures to boost domestic demand, adjust the economic structure, and maintain growth. II. Support the development of demonstration projects for photovoltaic applications in buildings, and implement the “Solar Roof Program”: 1. Promote demonstration projects for photovoltaic applications in buildings and stimulate the domestic market ； 2. Focus on key areas to ensure the effectiveness of the demonstration projects ； 3. Amplify the demonstration effect to create conditions for large-scale promotion. III. Implementation of financial support policies: 1. Provision of financial subsidies for demonstration projects on the application of photovoltaic technology in buildings ； Encourage technological progress and innovation ； 3. Encourage local authorities to introduce relevant financial support policies. IV. Strengthen policy support in the construction sector: 1. Improve technical standards ； 2. Strengthen quality management ； 3. Strengthen the development of capabilities in photovoltaic building integration application technologies. Comment: We maintain that the short-term drivers of stock prices in the alternative energy sector are policies and oil prices. The release of these regulations undoubtedly boosts investment confidence in China’s solar industry. We have raised the investment rating for the solar industry to “Overweight”. Article 6 of the Measures stipulates that, in principle, the subsidy standard for 2009 shall be set at 20 yuan/Wp. According to Solarbuzz, the price of polycrystalline silicon modules is 3.28$/Wp, that of monocrystalline silicon modules is 3.48$/Wp, and that of thin-film modules is 2.47$/Wp; the cost of systems is approximately 7$/Wp. In comparison, subsidies are quite attractive; of course, it is foreseeable that the feed-in tariff will ultimately be linked to these subsidies as well, thereby keeping the return on investment for solar project owners under control. Article 4 of the Measures states that local authorities are encouraged to introduce and implement supportive policies to foster the development of optoelectronics: implementing policies for sharing grid connection costs ； Implement other economic incentive policies such as financial subsidies. In this way, it is not ruled out that local authorities will introduce preferential electricity pricing plans for internet use. We are optimistic about the future growth in domestic photovoltaic installations, but given the supply and demand situation for polysilicon, we remain cautious regarding its prices in the short term. It should be noted that the Measures impose strict procedural requirements for project applications (Articles 7 to 12); it is evident that the approval process for demonstration projects is rigorous, with relevant departments controlling the amount of subsidies and the speed of approval. Although the speed of project approval may be limited, it is not ruled out that a large number of projects could be approved within a certain period of time. The Dunhuang project is something that deserves close attention in the near future. We believe that there are investment opportunities in the solar industry as a whole in the short term; therefore, we have listed all relevant listed companies on the A-share market, including some whose solar-related business accounts for only a small proportion of their total operations. Listed companies related to modules: TBEA, Minjiang Hydropower, Aerospace Electromechanics, Viko Essence, Xinhua Optoelectronics, Aucma, Tianwei Baobian, Jiaotong Nanyang, Sanan Optoelectronics, Ziyu Shares, Wangfujing, Antai Technology, Furui Shares, Tuori New Energy. Listed companies related to silicon materials: TBEA, Aerospace Electromechanical, Youyan Silicon, Jiangsu Sunshine, Ordos, Tongwei Co., Ltd., Tianwei Baobian, Leshan Power, Sichuan Investment Energy, Nanbo A, Dagang Co., Ltd., and Zhonghuan Co., Ltd. Other listed companies: Jinjing Technology, Lino Solar, Nanbo A, Seiko Technology, AVIC Sanxin.