Japan Solar Energy Market Assessment, By Technology [Solar Photovoltaic, Concentrated Solar Power], By Application [Residential, Commercial, Industrial, Utility], By Region, Opportunities and Forecast, FY2018-FY2032F

Japan solar energy market is projected to witness a CAGR of 8.05% during the forecast period FY2025-FY2032, growing from USD 10.58 billion in FY2024 to USD 19.66 billion in FY2032. 

Japan Solar Energy Market Size, Share and Forecast, 2032

Japan solar energy market is projected to witness a CAGR of 8.05% during the forecast period FY2025-FY2032, growing from USD 10.58 billion in FY2024 to USD 19.66 billion in FY2032. Japan solar energy market is expected to experience robust growth due to a combination of factors, such as government initiatives aimed at achieving carbon neutrality by 2050, advancements in solar technology, and increasing public awareness of environmental issues. The Japanese government also encourages the integration of solar energy through several incentives for installations and campaigns aimed at raising public awareness, further propelling the expansion of the solar market in Japan.
For example, in Japan, METI- the government's Ministry of Economy, Trade, and Industry, represents an important supporting factor for implementing solar energy systems and efforts toward a significant share of renewable energy sources in the country's energy mix.
Additionally, technological advancements have introduced newer solar solutions that are more flexible, efficient, and cost-effective compared to traditional models. The manufacturing cost for photovoltaic components has declined, while electricity prices in Japan are rising; the commingling of these factors also contributes to rapid market growth.
Moreover, continuous advancements in energy storage technologies are addressing the intermittent nature of solar power, making it a more reliable source of energy. Innovations in energy storage systems will also drive the growth of the Japanese solar energy market in the forecasted years.
For instance, in February 2022, JERA Co., Inc. and West Holdings Corporation entered into a head of agreement on a business alliance to develop solar power generation projects in Japan. This collaboration came amid increasing calls for energy decarbonization to achieve a sustainable society by 2050, with solar energy being recognized as a key near-term option due to its established technology and relatively short construction timelines.
<h2 style="text-align: justify;">Advancement in Solar Photovoltaics Technology Pushes the Market Towards Growth</h2>
Advancements in technology are significantly enhancing the efficiency, affordability, and flexibility of solar solutions. Innovations in photovoltaic (PV) technology have transformed the development of new, efficient solar panels, with some models achieving an efficiency of up to 22%. These improvements have increased users&rsquo; ability to generate greater amounts of electricity while boosting the productivity of solar installations.
Moreover, the cost of solar technology has decreased over time. The price of solar panels has dropped by nearly 80%. This price reduction enables the use of solar energy in both residential and commercial sectors. For example, between 2010 and 2024, the cost of solar installation decreased to about USD 4.50 per watt from USD 1.00 per watt. Coupled with increased electricity prices in Japan, this has made solar power a viable option for households and businesses.
Additionally, the development of energy storage systems has enhanced the viability of solar energy systems. With advancements in battery storage technologies, the residential sector can now store excess energy generated during the day, addressing one of the primary challenges associated with the intermittent nature of solar energy.
For instance, in July 2024, Enfinity Global, a United States-based renewable energy company, acquired a USD 164 million utility-scale solar photovoltaic (PV) power portfolio in Japan. The portfolio includes a total of 250 MW of solar capacity, supported by Japan&rsquo;s Feed-in Tariff (FiT), which provides financial incentives for renewable energy projects.
<h2 style="text-align: justify;">Government Policies Fuel the Market Growth</h2>
Government policies and incentives are the driving forces behind the growth of solar power in Japan. In response to concerns over energy security and commitments toward climate change, the Japanese government has begun several initiatives to promote heightened adoption of renewable energy sources, including solar power.
The introduction of the Feed-in Tariff or FiT program is one of the significant renewable energy initiatives introduced in the country as it provides solar energy producers with guaranteed payment for the electricity they generate and supply to the power grid.
Furthermore, the FiT has drawn robust financing, resulting in making solar available for the commercial and residential sectors. The government also offers other measures beyond the FiT, which include other forms of subsidies and tax credits to promote solar installations. For example, the residential sector receives financial support for purchasing solar panels, which lowers the initial investment barrier and increases the installation of solar panels. Moreover, the government also aims to increase the share of renewables in its energy mix to 36-38% by 2030, further emphasizing its commitment to sustainable energy.
Additionally, public awareness programs have been initiated to educate people about the benefits of solar energy and build a sustainable culture. Due to such policies and incentives, Japan's solar market will expand in the coming years.
For instance, in April 2022, the Japanese government announced a change in the subsidy system for renewable energy, transitioning from a Feed-in Tariff (FiT) to a Feed-in Premium (FiP). The new program enabled renewable energy producers to sell electricity in the spot market at prices above the wholesale rates.
<h2 style="text-align: justify;">Solar Photovoltaics Segment Dominates Japan Solar Energy Market Share</h2>
The rising electricity price in Japan, coupled with growing awareness of environmental issues, have propelled the demand for sustainable energy solutions, and the flexibility of photovoltaics (PV) systems allows for a wide range of installation options, from residential rooftops to large-scale solar farms which cater to diverse consumer needs.
Additionally, technological advancements in solar photovoltaics have increased efficiency, reaching above 22% efficiency levels. The cost of solar photovoltaics has been reduced over the years, further making solar photovoltaics a feasible solution for the domestic and commercial sectors.
Moreover, the FiT policy also has resulted in investment in installing solar photovoltaic systems. This policy guarantees fixed payments for solar energy producers and has led to remarkable increases in capacity. Therefore, solar PV systems form the base of renewable energy for Japan.
For instance, in February 2022, X-Elio concluded a financing agreement with Societe Generale and ING for its Sodegaura solar photovoltaic (PV) plant in Japan. The funds were used to build, operate, and maintain the 16 MW Sodegaura solar PV facility in the Chiba prefecture near Tokyo Bay.
<h2 style="text-align: justify;">Central Region Leads the Japan Solar Energy Market Share</h2>
The Kanto region is recognized as Japan&rsquo;s leading area and is widely regarded as the country's strongest in the solar market owing to its high concentration on an economic self-sustaining function and large population density. This region incorporates the Tokyo area, which accounts for about 45% of Japan&rsquo;s GDP, and is bound to be an essential center of economic activities and innovation of renewable energy sources in the country&rsquo;s regions.
Tokyo, being the administrative capital and one of the highly populated urban centers, necessitates the need for energy including solar power. As these areas are densely populated, there is a huge demand for residential homes to have solar energy systems installed. In addition, the people in the Kanto area have benefited from attractive government incentives for the use of renewable energy such as the FiT scheme.
Moreover, advancements in technology and an increasing awareness of environmental issues among residents have accelerated the growth of solar photovoltaics (PV) in this region. These combined factors have led to an increasing rate of solar installations in Japan, thus making the Kanto area the leader in transitioning towards sustainable energy.
For instance, in October 2023, Sekisui Chemical Co., Ltd. made a significant advancement in solar technology by installing film-type perovskite solar cells on the exterior walls of the Dojima Kanden Building in Osaka. This marks the first permanent installation of such solar cells on a building's exterior in Japan.
<h2 style="text-align: justify;">Future Market Scenario (FY2025 &ndash; FY2032F)</h2>
<ul style="text-align: justify;">
<li>The Japanese government continues to support the growth of the solar energy sector through incentives and policies aimed at increasing renewable energy adoption. The government is aiming to increase the share of renewable energy to 36-38% by 2030, which will drive further investments in solar energy.</li>
<li>Increasing electricity prices in Japan will further incentivize households and businesses to adopt solar power as a cost-saving measure.</li>
<li>Growing environmental awareness among the public is driving demand for sustainable energy solutions, pushing more consumers towards solar energy adoption.</li>
<li>Continuous advancements in solar technology, including higher efficiency panels and improved energy storage solutions, are expected to enhance the viability and attractiveness of solar installations.</li>
</ul>
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<h2 style="text-align: justify;">Report Scope</h2>
&ldquo;Japan Solar Energy Market Assessment, Opportunities and Forecast, FY2018-FY2032F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Japan solar energy market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between FY2025 and FY2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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Report Attribute
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Details
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Base Year of the Analysis
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FY2024
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Historical Period
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FY2018-FY2023
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Forecast Period
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FY2025-FY2032
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Projected Growth Rate
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CAGR of 8.05% between FY2025 and FY2032
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Revenue Forecast in 2031
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USD 19.66 billion
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Segments Covered
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Technology, Application
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Regions Covered
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North [Hokkaido and Tohoku], Central [Kanto and Chubu], South [Kansai, Chugoku, Shikoku, Kyushu, Okinawa]
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Key Companies Profile
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Sharp Energy Solutions Corporation, KYOCERA Corporation, Mitsubishi Electric Corporation, Canadian Solar Japan Co., Ltd., Trina Solar Japan Energy Co., Ltd., Solar Frontier K.K., JinkoSolar Holding Co., Ltd., SunPower Corporation, Hanwha Japan Co., Ltd., Toshiba Corporation
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfill your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report,&nbsp;Japan solar energy market&nbsp;has been segmented into the following categories:&nbsp;
<ul style="text-align: justify;">
<li>By Technology
<ul>
<li>Solar Photovoltaic</li>
<li>Concentrated Solar Power</li>
</ul>
</li>
<li>By Application
<ul>
<li>Residential</li>
<li>Commercial</li>
<li>Industrial</li>
<li>Utility</li>
</ul>
</li>
<li>By Region
<ul>
<li>North [Hokkaido and Tohoku]</li>
<li>Central [Kanto and Chubu]</li>
<li>South [Kansai, Chugoku, Shikoku, Kyushu, Okinawa]</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
Continuous innovation characterizes the landscape of Japan solar energy, as the companies compete to outperform one another in terms of solar photovoltaics technology and achieving energy efficiency. The market prognosis remains positive, owing to increased demand for cleaner energy sources. Japan solar manufacturers are concerned with advancements in technology, energy efficiency, and environmental practices, which will likely define the industry's future. Collaborations and developing technologies are projected to foster competition and growth in this fast-paced market.
For instance, in February 2023, TotalEnergies commenced operations at its fourth solar power plant in Tsu, Mie Prefecture, Japan. With a capacity of 51 megawatts (MW), the plant is connected to the electricity distribution grid and will supply power to Chubu Electric Power Miraiz Co., Inc. under a 17-year power purchase agreement.
The construction of the Haze plant took two years and features nearly 100,000 high-efficiency solar panels. It is designed to withstand adverse weather conditions, including earthquakes and typhoons. Covering an area of approximately 77 hectares, the plant is expected to provide clean electricity to around 20,000 households.
For instance, in November 2024, Industry Ministry officials in Japan promoted perovskite solar cells with the expectation of generating electricity that is the same as from 20 nuclear reactors by 2040. Such a target will be integrated with the efforts put in towards building next-generation renewable energy. This target will be included in Japan's revised basic energy program, to be published by the end of fiscal 2024. At present, renewable energy accounts for 22.9% of power generation in Japan, with a target of 36%-38% by fiscal 2030. The new program will also outline goals for 2040, with increased use of renewable energy, including advanced technologies such as perovskite solar cells, in further transitioning the nation towards sustainable energy sources.
Key Players Operating in Japan Solar Energy Market are:
<ul style="text-align: justify;">
<li>Sharp Energy Solutions Corporation</li>
<li>KYOCERA Corporation</li>
<li>Mitsubishi Electric Corporation</li>
<li>Canadian Solar Japan Co., Ltd.</li>
<li>Trina Solar Japan Energy Co., Ltd.</li>
<li>Solar Frontier K.K.</li>
<li>JinkoSolar Holding Co., Ltd.</li>
<li>SunPower Corporation</li>
<li>Hanwha Japan Co., Ltd.</li>
<li>Toshiba Corporation</li>
</ul>
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Japan Solar Energy Market Assessment, Opportunities and Forecast, FY2018-FY2032F

Japan solar energy market is expected to experience growth due to advancements in photovoltaic technology, government policies, and increasing awareness of cleaner energy, which is boosting the overall performance of solar energy.

Table of Contents
<ol>
<li>Project Scope and Definitions</li>
<li>Research Methodology</li>
<li>Executive Summary</li>
<li>Voice of Customer
<ul>
<li>Respondent Demographic</li>
<li>Factor Influencing Purchase Decision
<ul>
<li>Installation Time</li>
<li>Solar Panel Efficiency</li>
<li>Technical Sales and Service</li>
<li>Product Efficiency</li>
</ul>
</li>
<li>Government Initiative and Policies</li>
</ul>
</li>
<li>Japan Solar Energy Market Outlook, FY2018-FY2032F
<ul>
<li>Market Size Analysis &amp; Forecast
<ul>
<li>By Value</li>
<li>By Volume</li>
</ul>
</li>
<li>Market Share Analysis &amp; Forecast
<ul>
<li>By Technology
<ul>
<li>Solar Photovoltaic</li>
<li>Concentrated Solar Power</li>
</ul>
</li>
<li>By Application
<ul>
<li>Residential</li>
<li>Commercial</li>
<li>Industrial</li>
<li>Utility</li>
</ul>
</li>
<li>By Region
<ul>
<li>North [Hokkaido and Tohoku]</li>
<li>Central [Kanto and Chubu]</li>
<li>South [Kansai, Chugoku, Shikoku, Kyushu, Okinawa]</li>
</ul>
</li>
<li>By Company Market Share Analysis (Top 5 Companies and Others &ndash; By Value, FY2024)</li>
</ul>
</li>
<li>Market Map Analysis, FY2024
<ul>
<li>By Technology</li>
<li>By Application</li>
<li>By Region</li>
</ul>
</li>
</ul>
</li>
</ol>
<ol start="6">
<li>Porter&rsquo;s Five Forces Analysis</li>
<li>PESTLE Analysis</li>
<li>Market Dynamics
<ul>
<li>Market Drivers</li>
<li>Market Challenges</li>
</ul>
</li>
<li>Market Trends and Developments</li>
<li>Policy and Regulatory Landscape</li>
<li>Case Studies</li>
<li>Competitive Landscape
<ul>
<li>Competition Matrix of Top 5 Market Leaders</li>
<li>SWOT Analysis for Top 5 Players</li>
<li>Key Players Landscape for Top 10 Market Players
<ul>
<li>Sharp Energy Solutions Corporation
<ul>
<li>Company Details</li>
<li>Key Management Personnel</li>
<li>Products and Services</li>
<li>Financials (As Reported)</li>
<li>Key Market Focus and Geographical Presence</li>
<li>Recent Developments/Collaborations/Partnerships/Mergers and Acquisition</li>
</ul>
</li>
<li>KYOCERA Corporation</li>
<li>Mitsubishi Electric Corporation</li>
<li>Canadian Solar Japan Co., Ltd.</li>
<li>Trina Solar Japan Energy Co., Ltd.</li>
<li>Solar Frontier K.K.</li>
<li>JinkoSolar Holding Co., Ltd.</li>
<li>SunPower Corporation</li>
<li>Hanwha Japan Co., Ltd.</li>
<li>Toshiba Corporation</li>
</ul>
</li>
</ul>
</li>
</ol>
*Companies mentioned above&nbsp;DO NOT&nbsp;hold any order as per market share and can be changed as per information available during research work.
<ol start="13">
<li>Strategic Recommendations</li>
<li>About Us and Disclaimer</li>
</ol>

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