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Japanese Solar Panel Makers Eye Business Opportunities after Ordinance Mandates Installation on New Houses

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Japanese solar panel manufacturers are taking a proactive approach as they see business opportunities following the decision by the Tokyo metropolitan government and the Kawasaki city government to require that newly built houses have solar panels installed in April.

Although Chinese manufacturers currently dominate solar panel production, Japanese manufacturers are looking to compete with new products and initiatives. These include new types of solar panels that are better suited to Japanese homes, where securing space for installation is difficult, as well as a system that reduces users’ costs.


New type of product

In late May, Sharp Corp. released a new type of solar panels that can prevent light-related issues by reducing optical reflection.

By adopting glass with pebble-grained surfaces, light is diffused and reflected at a level 1/20 to 1/30 that of conventional models.

Solar panels are generally placed on the south side of roofs to maximize sunlight exposure. In urban areas, particularly in central parts of big cities, where land is limited, panels are often placed on the north side of roofs.

However, since sunlight is reflected at low angles on the north side of roofs, there is a tendency for light to enter nearby houses.


Reducing cost burdens

In June, Panasonic Corp. introduced a system that enables companies to install solar panels without paying any upfront costs through Osaka Gas Co.’s Power Purchase Agreement (PPA) program.

Under the program, Osaka Gas owns the solar power generation systems for 15 years from installation and recovers the initial costs by selling the power generated by the systems.

During this period, homeowners can purchase electricity from Osaka Gas at discounted rates. Starting in the 16th year, homeowners gain ownership of the solar power generation systems free of charge and can use or sell the electricity produced.

According to the Economy, Trade and Industry Ministry, the average cost of installing solar power generation systems for newly built houses in 2021 was ¥271,000 per kilowatt. This figure rose to ¥286,000 in 2024.

The head of Panasonic’s sales promotion division said: “While both installing costs and electricity bills are on the rise, we aim to reduce users’ financial burden with the new system.”

The government has set a goal to reduce greenhouse gas emissions by 46% by fiscal 2030, compared to fiscal 2013 levels.

In order to achieve this goal, the government plans to increase the percentage of newly built homes with solar panels from 36.5% in fiscal 2023 to 60% in fiscal 2030.

Progress has been made thus far in terms of the rate of solar panel installations. The number of solar panel systems in homes has nearly doubled, growing from about 1.69 million in fiscal 2013 to about 3.35 million in fiscal 2023.


Chinese makers gain strength

However, Japanese manufacturers, which were once dominant in solar panel production, are now being pushed aside by Chinese manufacturers who are gaining strength by selling low-priced products.

According to the Japan Photovoltaic Energy Association, about 97% of solar panels purchased in fiscal 2004 in the nation were made by Japanese makers. But in fiscal 2024, about 94.9% of purchased panels were made by foreign manufacturers.

Prof. Yuzuru Ueda of Tokyo University of Science, an expert of engineering studies, said: “It’s difficult to differentiate solar panels made by Chinese manufacturers in the current technological landscape.

Japanese manufacturers should leverage their strengths in design and reliability to suit Japan’s housing conditions and respond to the needs of clients very thoroughly.”
 
 

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