As of 2023, Japan’s solar energy generation capacity reached around 87 GW.⁵

The Country    is set on expanding this capacity significantly, with plans to exceed 150 GW by 2030. In a more optimistic scenario, the capacity could potentially grow to 180 GW.⁶

The average cost of electricity generation in Japan is as follows:⁷

• Hydropower Generation: $0.058 per kWh.
• Solar Generation: $0.06 to $0.11 per kWh.
• Coal Generation: $0.10 per kWh.
• Nuclear: $0.16 per kWh.
• Natural Gas Generation: $0.089 to $0.10 per kWh.
• Wind Generation: $0.067 to 0.11 per kWh.

The energy mix in Japan is as following (%):⁸¹⁰

• Coal 30.80
• Oil 3.98
• Natural gas 32.86
• Biofuels 3.32
• Waste 2.04
• Nuclear 5.54
• Hydro 9.19
• Geothermal 0.29
• Solar PV 9.36
• Wind 0.95
• Other sources 1.68

Urban areas receive nearly 24 hours of electricity per day, while rural areas also enjoy a very high level of electricity availability.⁴

The exact number of residential solar panel installation is difficult to determine. The residential installed capacity of Solar panels in Japan is estimated as 23 GW.¹¹

As of September 2023, Japan had approximately 4,340 solar power plants. However, the future number of solar farms cannot be accurately predicted due to limited data availability. According to GlobalData, Japan new solar technology photovoltaic (PV) systems made up 22% of Japan’s total installed power generation capacity, with expectations for this figure to rise to 35% by 2035.⁹¹³

Currently, there is limited specific data available on the off-grid solar market capacity for Japan. However, the market segment is progressing at a notable rate. In 2023, the Off-Grid Solar Market was valued at approximately USD 2.45 billion. The industry is projected to grow from USD 2.74 billion in 2024 to an estimated USD 6.81 billion by 2032, demonstrating a compound annual growth rate (CAGR) of 10.67% during the forecast period (2024 – 2032). This growth reflects increasing demand for reliable and sustainable energy solutions in off-grid areas, supported by technological advancements and supportive government policies.¹⁴

As of 2023, Japan’s solar energy generation capacity reached approximately 87 GW. The country has ambitious plans to expand this capacity, targeting over 150 GW by 2030, with potential growth reaching up to 180 GW under more ambitious scenarios. This expansion is driven by Japan’s commitment to decarbonization and energy security, supported by favorable government policies and technological advancements in the solar sector​.⁶

Here is the salary details for various solar related professions in Japan:¹⁵

• Electrical Engineer $3000 – $5000
• Solar Design Engineer $3500 – $6000
• Solar Energy System Installer $1000 – $3000
• Electrician $1500 – $2500
• Solar Energy / Solar Power Engineer $1,904- $3,184
• Solar Installation Electrician $1,146 – $1,592

The current population of Japan is 122,624,183 as of Wednesday, July 3, 2024, based on Worldometer elaboration of the latest United Nations data.¹⁶

The average overhead costs for solar panel production in Japan can be broken down into several key categories, each contributing to the overall expenses.

Raw Material Costs

Raw materials, such as silicon, aluminium, and copper, significantly contribute to the total cost of solar panel production. The cost of raw material varies as it depends on global supply and demand, geopolitical events, and economic conditions.

Utilities and Energy Costs³²⁵

Utilities and energy costs are essential, especially given the high energy consumption required for production processes.

• Electricity costs in Japan for industrial users are typically around $0.17 per kWh​.
• Water Charges: Basic service charge for a supply pipe with a 13mm diameter: approximately $5.97 USD.²⁵
• Water Commodity Charges:
  • Minimum charge: approximately $0.89 USD per cubic meter.
  • Maximum charge: approximately $2.81 USD per cubic meter.

Labor Costs ²⁶

Labor costs in Japan vary depending on the specific region and manufacturing company. Minimum wages in Japan increased to approximately 9.11 USD per hour in 2023 from about 8.74 USD per hour in 2022. Over the period from 2002 to 2023, minimum wages in Japan averaged approximately 7.12 USD per hour, reaching a peak of 9.11 USD per hour in 2023 and a low of 6.03 USD per hour in 2002, based on current exchange rates.

Facility Maintenance ²⁷

Maintenance costs related to manufacturing facilities, including rent, equipment maintenance, and repairs, depending on the size and location of the facility. Setting up an office in Japan costs approximately $40,000 to $49,000, with expenses varying based on the type and location of the office. The breakdown includes rent for a temporary office for up to three months, which can range from $0 to $8,800, and monthly rent for a typical 50 sq.m office in Tokyo’s Minato ward at around $3,400. Additionally, a security deposit equivalent to ten months‘ rent, totaling $33,610, and a real estate brokerage fee of one month’s rent, or $3,400, are also required.

Administrative Expenses¹⁵

Administrative expenses, including salaries of administrative staff, office supplies, and other general expenses, form a substantial part of the overhead. These can contribute significantly to the overall cost structure.

The salary ranges from $2000 to $3000 of various employees related to solar industry

Quality Control

Quality control expenses, including testing and inspections to ensure the solar panels meet performance and safety standards, are also crucial.

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Japan’s energy infrastructure is complex and evolving. Here’s a breakdown of key points:

• High Reliance on Imports: Japan has scarce domestic energy resources and relies heavily on imports, particularly for fossil fuels like oil, natural gas, and coal. They are the world’s fifth-largest energy consumer but import 97% of their oil needs.
• Shifting Focus: Following the Fukushima nuclear disaster in 2011 and a desire for energy security, Japan is actively transitioning its energy mix. They’re aiming to reduce dependence on fossil fuels and increase renewable energy sources.
• Current Energy Mix: Fossil fuels still dominate Japan’s energy mix, accounting for around 72% of electricity generation in 2021. However, there’s a growing role for renewables (wind, solar, hydro) and nuclear power is slowly returning to the mix.
• Renewable Energy Push: Japan has ambitious goals for renewable energy. They aim for renewables to account for 36-38% of the energy mix by 2030 and achieve net-zero emissions by 2050. Solar power is currently leading the way, with Japan boasting the third-largest installed solar capacity globally.
• Challenges: Despite efforts, there are challenges. Expanding renewable energy infrastructure faces hurdles like limited land space and public resistance in some areas. Additionally, the future of nuclear power remains uncertain.

Japan has a well-developed electricity grid that efficiently transmits power across the country. Energy efficiency is a priority, with Japan achieving significant reductions in energy consumption per unit of GDP in recent years. Overall, Japan’s energy infrastructure is undergoing a significant transformation. The country is balancing the need for energy security with environmental sustainability and a desire to reduce reliance on imported fuels.

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Here is an overview of the regulations regarding solar energy in Japan:

• Agrivoltaics Guidelines: Japan has established guidelines to integrate agriculture with photovoltaic systems, a practice known as agrivoltaics. To qualify as an agrivoltaic project, the installation must support agricultural activities, such as growing crops or raising livestock, alongside solar power generation.
• Building Regulations: Agrivoltaic projects are subject to specific building regulations, including height restrictions. These projects must not exceed a height of 9 meters. Exceptions exist for installations using tracking systems or those located within barns and horticultural greenhouses.
• Financial Incentives: The Japanese government supports renewable energy development through mechanisms like the Feed-in Tariff (FIT) and Feed-in Premium (FIP) systems. These incentives, outlined in the Renewable Energy Act, encourage the adoption of renewable energy sources, including solar power, to promote a carbon-neutral society. The incentives are available for projects with power purchase agreements (PPAs) and those focused on self-consumption.
• Dual Use of Farmland: Japan’s regulations allow for the temporary use of farmland for solar power generation, provided the installations can be removed and are designed to ensure adequate sunlight for co-located crops. This dual-use approach aims to maintain agricultural productivity while generating renewable energy.
• Farmland Use for Solar Power: Operators can use former farmland for solar energy production under certain conditions. They must cultivate agricultural products beneath the solar panels, ensuring that the level of agricultural output is comparable to that of traditional farmland. This requirement helps balance energy production with agricultural activities.

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Japan supports its solar sector through several key initiatives:

• Feed-in Tariffs (FITs): The Ministry of Economy, Trade and Industry (METI) sets feed-in tariffs for solar installations. These tariffs apply to systems with capacities ranging from 10 to 250 kW, and feed-in premiums are designated for projects over 250 kW selected through an auction system. Initially, FITs were over $0.25/kWh in 2013 but have been gradually reduced to around $0.13/kWh for the 2020-2021 period. This reduction aims to enhance cost competitiveness and alleviate the financial burden on consumers.
• Auction System: Japan has implemented an auction system for renewable energy projects, including solar, to promote cost efficiency and competitiveness. This system encourages developers to offer the most competitive prices for electricity generated from renewable sources.
• Rebate Scheme: The Ministry of Environment offers a rebate scheme for solar projects located on farmland, water reservoirs, and waste disposal sites. This program covers up to 50% of a project’s costs, with a maximum grant of JPY 300 million. The scheme aims to incentivize solar installations in less conventional locations.
• Resurrecting Solar Subsidies: Although Japan was the first country to introduce federal solar subsidies, these were discontinued in 2005. Recently, there have been discussions about reinstating these subsidies to enhance the global competitiveness of Japanese solar panel manufacturers.
• Generous Solar Incentive Program: In response to the Fukushima nuclear disaster, Japan established a robust solar incentive program. This initiative has been projected to drive at least $9.6 billion in solar installations, contributing to an additional 3.2 gigawatts of capacity.

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Major utility-scale solar projects in Japan include:

Setouchi Kirei Mega Solar Power Plant

• Capacity: 235 MW
• Location: Setouchi, Okayama

Eurus Rokkasho Solar Park

• Capacity: 148 MW
• Location: Aomori

SoftBank Tomatoh Abira Solar Park

• Capacity: 111 MW
• Location: Hokkaido

Oita Solar Power

• Capacity: 82 MW
• Location: Oita

Kagoshima Nanatsujima Mega Solar Power Plant

• Capacity: 70 MW
• Location: Kagoshima

Projected:

Japan Renewable Energy Corporation Yurikamome Solar Power Plant

• Capacity: 100 MW
• Location: Miyagi Prefecture

Landrec Orion Solar Project

• Capacity: 180 MW
• Location: Kagoshima Prefecture

Tohoku Electric Onagawa Solar Power Station

• Capacity: 140 MW
• Location: Miyagi Prefecture

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Here are some of the Notable Solar Companies in Japan:

• Kyocera Corporation: A leading global manufacturer of solar panels, electronic components, and telecommunications equipment. They have a strong presence in the Japanese solar market and provide a variety of solar services including installation, maintenance, and financing.
• Sharp Corporation: A major Japanese electronics company that also manufactures solar panels and offers solar services including installation, maintenance, and monitoring. They were once a dominant player in the solar panel industry but have faced challenges in recent years.
• Panasonic Corporation: A well-known Japanese electronics company that manufactures a variety of products, including solar panels. They are increasingly focusing on the residential solar market and provide installation, maintenance, and financing services for homeowners.
• Canadian Solar Inc.: A Canadian solar panel manufacturer with a significant presence in the Japanese market. They are known for their high-quality and cost-competitive solar panels and offer a variety of solar services including system design, installation, and financing.
• Solar Frontier Co., Ltd.: A Japanese company that specializes in the development and production of CIS (copper indium selenide) thin-film solar panels and provides installation and maintenance services for their solar panels.
• Hanwha Q CELLS Co., Ltd.: A South Korean solar panel manufacturer with a growing presence in the Japanese market. They offer a wide range of solar panel products for various applications and provide installation, maintenance, and financing services.
• Enel X: A global leader in advanced energy solutions, including distributed solar generation, electric vehicle charging, and energy storage. They are expanding their presence in Japan and offer solar panel installation, financing, and operation and maintenance services.
• Switch Corporation: A leading Japanese renewable energy company that focuses on developing, constructing, and operating utility-scale solar power plants. They also offer consultation and engineering services for solar projects.