NewEnergyNews: SUN RISING IN LAND OF RISING SUN

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    Friday, March 29, 2013

    SUN RISING IN LAND OF RISING SUN

    World's 'Most Attractive' Incentives Will Bump Japan's Solar Status

    19 March 2013 (Solar Industry)

    “The Japanese photovoltaic market is set to grow by 120% this year, with more than 5 GW of new capacity expected, according to a new report from IMS Research (part of IHS Inc.)…[Installations are] expected to exceed 1 GW in the first quarter alone…

    “…[Japan's PV market currently benefits from [the world's most attractive PV incentive policy, including a feed-in tariff (FIT) paying up to 42 yen/kWh (but declining 10% beginning April 1), the 5+ GW 2013 forecast would leapfrog Japan ahead of Germany, Italy and the U.S. to become the world’s second biggest PV market]…”

    “…[Though Japan remains a tough market for non-Japanese companies,] domestic PV installations are proving to be a lifeline for struggling Japanese companies that are able to sell both modules and inverters at high margins [despite their lack of competitiveness internationally]…Providers of residential system kits; engineering, procurement and construction contractors; and project developers are also seemingly enjoying the high margins that come with a generous FIT and its resulting high system prices.

    “Projects more than 2 MW in size (considered "mega-solar" in Japan) are a major driving force behind the country's triple-digit growth rate, but this trend…[will] decline after 2013…[But commercial rooftops systems] in the range of 10 kW to 50 kW are in very high demand in Japan due to high incentives, high electricity prices, power shortages for commercial properties and relatively simple regulations…”

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