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Solar power in Japan has been expanding since the late 1990s. The country is a major manufacturer and exporter of photovoltaics (PV) and a large installer of domestic PV systems, with most of them grid connected.[1]
Solar power has become an important national priority since the country''s shift in policies toward renewable energy after the Fukushima Daiichi nuclear disaster in 2011.[2][3]Japan was the world''s second largest market for solar PV growth in 2013 and 2014, adding a record 6.97 GW and 9.74 GW of nominal nameplate capacity, respectively. By the end of 2017, cumulative capacity reached 50 GW, the world''s second largest solar PV installed capacity, behind China.[4][5]
In line with the significant rise in installations and capacity, solar power accounted for 9.9% of Japan''s national electricity generation in 2022, up from 0.3% in 2010.[6]
Japanese manufacturers and exporters of photovoltaics include Kyocera, Mitsubishi Electric, Mitsubishi Heavy Industries, Sanyo, Sharp Solar, Solar Frontier, and Toshiba.
During the Reagan administration in the United States, oil prices decreased and the US removed most of its policies that supported its solar industry.[7]: 143 Government subsidies were higher in Japan (as well as Germany), which prompted the solar industry supply chain to begin moving from the US to those countries.[7]: 143
The Japanese government is seeking to expand solar power by enacting subsidies and a feed-in tariff (FIT). In December 2008, the Ministry of Economy, Trade and Industry announced a goal of 70% of new homes having solar power installed, and would be spending $145 million in the first quarter of 2009 to encourage home solar power.[8] The government enacted a feed-in tariff in November 2009 that requires utilities to purchase excess solar power sent to the grid by homes and businesses and pay twice the standard electricity rate for that power.[9]
On June 18, 2012, a new feed-in tariff was approved, of 42 Yen/kWh. The tariff covers the first ten years of excess generation for systems less than 10 kW, and generation for twenty years for systems over 10 kW. It became effective July 1, 2012.[10]In April 2013, the FIT was reduced to 37.8 Yen/kWh.[11] The FIT was further reduced to 32 Yen/kWh in April 2014.[12]
In March 2016, a new feed-in tariff was approved for electricity generated by photovoltaic power.The Procurement Price Calculation Committee compiled and publicized recommendations concerning the FY 2016 purchase prices and the periods to which they apply. Respecting the recommendations, METI finalized these as follows:
Residential PV feed-in tariffs for systems below 10 kW were updated in 2017 to values between JPY24/kWh to JPY28/kWh depending on the circumstances. These were due to remain unchanged until 2019.[14]
The most recent FIT only concerns non-residential solar power plants. The new non-residential FIT was due to reduce in 2017 from JPY21/kWh in 2017 to JPY18/kWh for facilities certified in and after April 2018.[14]
The government set solar PV targets in 2004 and revised them in 2009:[15]
As of July 2021, Japan was aiming at 108 GW of solar capacity by 2030. In May 2021, the Japanese Trade Ministry said that Japan may require up to 370 GW of solar capacity by 2050 to reach the goal of cutting carbon emissions to zero.[16]
Japan is a world leader in the photovoltaic (PV) market, with a significant share of the global market since about 45% of photovoltaic cells are manufactured in Japan. The country has been at the forefront of solar energy innovation and has been investing heavily in the development of solar PV technology.
The Japanese solar energy market is expected to witness more than a 9.2% CAGR during the forecast period (2023-2028). Factors such as solar PV projects under construction in the pipeline and planning stages are expected to boost the cumulative installed solar energy capacity during the forecast period. Let''s dive deeper into trends, projects, and strategies with which Japan is leading the global photovoltaic market.
Japan''s photovoltaic industry has been growing steadily over the years, and there have been several recent developments in the industry. Here are some of the recent developments in Japan''s solar PV industry:
Space-Based Solar Power and Perovskite Solar Cells: Japan is making progress in solar, offshore wind, storage, and hydrogen technology. The country is a leader in solar PV innovation and is now looking to grow its industry further amid US-China tensions and a shift to renewables. Japan Targets Adoption of Flexible Solar Panels by 2030: Japan aims to popularize the use of flexible solar cells by 2030, with the government planning to support mass production by domestic companies and introduce them at public buildings, train stations, schools, and elsewhere.
Japan''s photovoltaic market is one of the largest in the world, with a cumulative installed capacity of over 70 GW as of 2023. The country has been investing heavily in solar PV technology, with the government providing incentives for the installation of solar panels. The government''s feed-in-tariff (FIT) scheme has been instrumental in driving the growth of the solar PV market in Japan. The FIT scheme provides a guaranteed price for solar energy generated by residential and commercial PV systems, making it an attractive investment for homeowners and businesses.
The plan clarifies the government''s policy of working with companies and others to build supply networks and encourage widespread use of the panels. Japan is also investing in other innovative solar PV technologies, such as space-based solar power and flexible perovskite solar cells.
In conclusion, Japan is leading the global photovoltaic market with its innovative solar PV technologies, major photovoltaic projects, and companies that manufacture photovoltaics. The country''s focus and efforts in renewable energy generation and government incentives for solar energy have been instrumental in driving the growth of the photovoltaic market in Japan.
Japan''s success in the photovoltaic market serves as an example for other countries to follow in promoting photovoltaic technology. Japan is making tremendous progress in solar PV innovation and is now aiming to be at the top. With continued investment and innovation, Japan''s photovoltaic industry is poised for unprecedented growth in the coming years.
Solar energy in Japan is emerging as a cornerstone of Japan’s strategy to meet its ambitious long-term sustainability goals. The Sixth Strategic Energy Plan aims for carbon neutrality by 2050 with an interim goal of 36-38% of energy from renewables by 2030. This underlines a significant shift towards renewable energy, with a majority coming from solar power generation.
This goal reflects Japan’s acknowledgement of its significant solar energy potential, which is enough to produce four times the country’s current energy needs through PV system projects, including rooftops solar panels, floating and others in conjunction with agriculture. Furthermore, the country’s population is in decline, which will free up an additional 8,000 square km of agricultural land – an ideal amount for utility-scale solar facilities.
In 2022, solar energy accounted for 5.39% of Japan''s total energy mix and 9.91% of its electricity generation. In both cases, solar power in Japan holds the largest share of all renewable sources. This is a drastic contrast to even a decade ago when solar energy contributed less than 1% of the country’s energy. In total, solar energy in Japan grew from 11.05 TWh in 2010 to over 260 TWh in 2022.
However, even with this shift, the country must dramatically increase its solar energy infrastructure to meet its 2030 and 2050 targets. In 2022, Japan produced 4,956 TWh of energy. Assuming energy consumption remains relatively stable, renewable energy capacity will need to grow to 1,784 TWh by 2030. This growth relies on better government policy to incentivise renewable energy and grid infrastructure investment.
The steady growth of solar power in Japan is attributed to several factors, including the country’s focus on energy security, economic efficiency and environmental sustainability. Post-Fukushima, there was a national reevaluation of energy sources. Where nuclear power once previously accounted for around 13% of the country’s energy, within a year that dropped to less than 1%. This gap was filled with a mix of renewables and fossil fuels, coinciding with the growth of solar energy in the country.
Solar energy in Japan, with its relative ease of installation and support through governmental policies, such as generous feed-in tariffs, emerged as a popular choice. This allowed individual consumers to economically invest in residential solar arrays, while developers constructed large utility-scale facilities.
Moreover, initiatives like agrivoltaics and floating solar power plants are becoming more popular, allowing the country to capitalise on a growing portion of its potential solar capacity. Japan is home to over 50 of the world’s 100 largest floating solar facilities and around 2,000 agrivoltaic farms.
Japan’s renewable energy policy is primarily encapsulated in the country’s Sixth Strategic Energy Plan, which was released in 2021. It is the country’s basic guideline for medium to long-term energy policy. The plan is updated every three to four years to align with the changing regional and global energy landscape. The plan calls for maximising the development of renewable energy infrastructure in harmony with local communities.
The Japanese government has introduced several specialised programs to facilitate this growth. One of the key existing programs is the feed-in tariff, which guarantees the purchase of electricity from a new solar energy facility at a set price for a number of years. This lets developers know they will recoup a significant portion of the upfront construction costs, lowering overall risk.
Another major step is the announcement of a national carbon pricing system that will come online in 2028. The system will tax fossil fuel importers, disincentivising fossil fuel use in favour of domestic low-carbon options.
Overall, the growth potential for Japan’s solar energy sector is immense, which will help spur the country’s domestic PV industry. Forecasts suggest the solar energy market will see a compound annual growth rate of 9.2% until 2029.
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