This article introduce the development of China solar water heater industry .Gives an overview of stages, market, manufacturing, application and testing about China solar water heater industry. Show the market data from 1998 to 2009. Analyze the experiences and features about the industry. The article also introduces the policy for solar hot water industry in China. These policies have accelerated the development of industry in which the main two incentive policies have the greatest influence on solar water heater industry. First one is the policy of mandatory installation of solar water heater implemented since 2007 by some local governments at provincial and municipal levels. Second is the subsidy policy for solar water heaters in the household appliances going to the countryside scheme implemented since 2009. At last the article gives the reason why China solar water heater industry have so rapid growth. From technology research, industrialization, prices and policy environment gives analysis. (C) 2012 Elsevier Ltd. All rights reserved.