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. 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. 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. 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.

Solar manufacturing industry

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. 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.

Government action

Feed-in tariff

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. 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. 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. In April 2013, the FIT was reduced to 37.8 Yen/kWh. The FIT was further reduced to 32 Yen/kWh in April 2014. 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. 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.

Targets

The government set solar PV targets in 2004 and revised them in 2009: The targets set for 2020 were surpassed in 2014, and the target for 2030 was surpassed in 2018. 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.

Photovoltaics installed capacity and generation