Digitimes Research:System costs drop rapidly in Japan solar market Hana Hu,DIGITIMES Research,Taipei[Monday 7 May 2012]The residential solar PV system installation market in Japan grew significantly due to increasing clean energy awareness.The market expects new feed-in-tariff(FIT)policies to come into effect in July 2012,which will buyback 100%of electricity generated.The will further promote the development of large-size solar power plants.
Solar subsidies and FITs continue to affect demand for residential solar PV system installations in Japan.To help decrease the price of solar PV systems,subsidies in 2012 will be divided into categories according to system prices,the lower the price,the more subsidies can be obtained.The 2012 FIT rate remains the same as in 2011 at JPY42/kWh(US$0.53/kWh)and lasts for 10 years.Power generated by commercial systems will be bought back in full starting July 2012 with a FIT set at JPY42/kWh for 20 years.
The burgeoning market conditions in Japan's solar market have been attracting international firms from South Korea and China to inject investment.These firms use low-price solar products to gain market share.Although this has been pushing system prices in Japan to fall rapidly,Japan's weakness with regard to relatively expensive solar PV systems has been made apparent.The lack of competitiveness of Japan-based solar firms in the international market will become an important concern.
Costs of solar installations in Japan fall rapidlyPhoto:Digitimes file photo
