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Japanese PV Market
2009 JAPAN MARKET REPORT
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Information updated as of July 2009
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By the end of 2007 cumulatively 1.9 GW of PV system have been installed in Japan, mainly on residential homes.
Japan was the sixth largest country market for solar photovoltaics in 2008. In that year, a further 230 Megawatts of solar photovoltaic energy was installed in the country.
Around 17% of the world's solar cell production was manufactured in Japan in 2008.
market was first stimulated by the PV Research and Development program, which began as the Sunshine Project in 1974 in order to help Japan become less dependent on imported oil.
The most important federal program initiated was the Residential PV System Dissemination Program. Between Fiscal Year 1994 and Fiscal Year 2005, it funded for total installations of over 930 MW, comprised of over 250,000 residential PV systems, and successfully reduced the buy-down rebate from ¥900,000/kW in Fiscal Year 1994 to mere ¥20,000/kW in Fiscal Year 2005.
The Ministry of Economy, Trade, and Industry (METI) has been the core agency supporting commercial, industrial and public segments under the program called Field Test.
The non-residential PV market has been growing in both numbers and sizes, but still representing a very small fraction, a little over 10%, of the domestic PV market.
In Japan, the ten investor-owned regional electric power companies are responsible for providing regional services. These ten utilities have played an important role in deployment of PV systems in Japan, through (1) buy-back scheme on excess PV generated electricity, (2) Green Power Fund and (3) compliance to the Renewable Energy Portfolio.

Japanese residential customers have to pay one of the highest electricity rates in the world, at the average of ¥20.78 in Fiscal Year 2007, in spite of the recent deregulations that led the electric utilities to a series of reduction in tariffs. The ten Japanese utilities voluntarily started implementing a buy-back scheme in Fiscal Year 1992 and this scheme has been providing PV owners with the full retail value for all excess electricity generations.

The buy-back scheme helps a PV owner drastically reduce electricity bills and generate extra income by selling electricity at much higher on-peak tariff rates (around ¥30/kWh) and buying at off-peak rates (around ¥7-8/kWh).
Japanese RPS became effect in April 2003, based on "Special Measures Law Concerning the Use of New Energy by Electric Utilities." This obligation was originally 12.2. TWh by Fiscal Year 2010 or mere 1.4% of a total retail electricity sales and in January 2007, the RPS was expanded and the requirement increased to be 1.6% of total retail electricity sales from renewable energies by Fiscal Year 2014.
Along with this revision, a new policy was created to double count PV generated electricity toward RPS requirement during a period of Fiscal Year 2010 through Fiscal Year 2014. At the end of Fiscal Year 2007, wind contributed 2.7 billion kWh while PV contributed 0.6 billion kWh of renewable electricity to the national RPS requirement.
The federal government originally established a long-term energy goal to install 4.82 GW of PV by Fiscal Year 2010. Although this goal is likely to be unachievable, it is recently replaced by more ambitious "vision" created by former Prime Minister Fukuda in June 2008.
Fukuda Vision is to increase the cumulative PV installed capacity by 10 times, from the 2005 level, to be 14 GW by 2020 and by 40 times to be 53 GW by 2030. The former Prime Minister also pledged to install PV systems on 70% of newly built homes by 2020.
To align with the Fukuda Vision, federal agencies such as METI have re-launched subsidy programs for the residential market from 2009, hoping the domestic market will re-flourish again.
Click here to go to Solar Energy Companies in Japan.
Click here to go to Japanese Solar Energy Society (in japanese).
Listing of the major Japanese Utilities



Of these Utilities, Tokyo Electric Power (also known as TEPCO) is the largest.
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