It has been disputed that we should take ‘supply side’ or ‘demand side’ first in emerging industry’s fiscal subsidy direction. Photovoltaic industry is a microcosm of China's strategic emerging industry development, this paper, by taking the photovoltaic industry as an example, analyzes the necessity and feasibility of the fiscal subsidies which moderately favor the demand side from the comparison perspective of supply side and demand side. Research and analysis show that the current supply side financial subsidy scheme plays a positive role in promoting the development of photovoltaic industry. But it has also brought about a series of problems：the capacity of non rational expansion, excessive dependence on exports and the serious lag of the domestic market. Moderate deviation of demand side subsidies is of great significance in the rapid start of domestic photovoltaic industry application market, and it will arouse the enthusiasm of upstream and midstream of photovoltaic industry supply side’s development. It is also the effective way to solve the ‘overcapacity’ of our PV and some other parts of emerging industries of strategic importance. Fiscal subsidy may a way out for the healthy development of the present photovoltaic industry.