This research applied Data Envelopment Analysis (DEA) to investigate the solar energy industry in Asia including 66 DMU from 34 companies which are selected from six Asian countries (Taiwan, Japan, China, India, Korean, and Thailand) during 2005-2006. Based on previous studies, operation costs, operation expenses, total assets, fixed assets and operation income are chosen as variables. The research indicated: (1) The main cause for inefficiency of most companies is inefficient scale, and the second cause is inefficient technology. Most companies are very optimistic about the prospect of solar energy, and have continued to expand their capacities beyond scale of efficiency. In order to become efficient, reduction of scale is the appropriate strategy. (2) The demand of silicon exceeds the supply is the main reason that leads to increasing operation costs in the solar energy industry, change in operation costs has the greatest effect on technical efficiency.