Incentives boost solar sector in Japan

Domestic shipments of solar cells and modules rose 80% in the Q3.

The government attributed the rise to its incentive program for clean energy that began in July. Domestic shipments increased to 627 megawatts from 348 megawatts year-on-year, the Japan Photovoltaic Energy Association said.

Imports tripled to 203 megawatts while exports fell 57% to 153 megawatts. The figures show solar cells and modules produced outside Japan accounted for 32% of all domestic shipments in the quarter.

Japan introduced a feed-in tariff or FIT in July to encourage investment in renewable energy as the country diversifies its energy sources after the 2011 Fukushima nuclear disaster.

The program requires utilities to buy clean energy at above-market rates. The rate for solar power is US$0.52 cents per kilowatt hour for 20 years. That’s about three times the rate per kilowatt hour that industrial users paid for electricity in the 12 months ended in March.

In fiscal 2008 beginning April, imported solar products accounted for 0.1% of all domestic shipments before jumping to 11.3% the following year. In fiscal 2010 and 2011, imports were 15.8% and 21.5% of shipments respectively.