The Japan Photovoltaic Energy Association (JPEA) announced in June 2013 that solar cell shipments of first-quarter 2013 in Japan reached 173.4MW, an on-year growth of 342.8%. This shows strong demand for solar in Japan.
According to Digitimes Research, due to the feed-in-tariff (FIT) policies, the number of large-size solar power plants in Japan has been increasing. However, this has been causing grid capacity problems. Hence, Japan's Ministory of Economy, Trade and Industry announced three emergency measures on April 17, 2013 to loosen grid connection requirements, set up large-size electricity storage batteries, and adjust the supply and demand of the market.
The three measures have been affecting Hokkaido as the island has relatively cheap land and has been one of the favorites for solar firms. But the measures mean power companies no longer has to procure all electricity produced by solar power plants, and hence Hokkaido Electric Power, the local power company, has set limits to the amount of electricity for power generators above 2,000kW. This has been pushing firms to invest in other cities. However, other cities also have grid capacity problems.
Installations of mid-size solar power plants (10kW-1,000kW) have been rising in Japan because the installations require smaller land area and are also low in costs. This size of solar power generation is suitable for factories and businesses. According to statistics provided by Ministory of Economy, Trade and Industry in April, newly added mid-size solar power installations in January alone reached 88.8MW, representing an on-month increase of 56% compared to December 2012.
