Japan to become world’s second largest solar market by Q2

Will outstrip the USA by installing 5 gigawatts of new solar power capacity.

New research shows the Japanese photovoltaic market is set to grow by 120% this year. Installations could exceed 1 GW in the first quarter alone, causing it to become the second largest market in 2013.

Driving the solar energy growth are Japanese home owners who have been turning to solar power to benefit from very generous feed-in tariffs. At US$0.44, Japan’s FIT is by far the most attractive globally but could lead to overheating of the market.

Domestic PV installations are proving to be a lifeline for struggling Japanese companies that are now able to sell both modules and inverters at high margins.

Mega solar’ projects of more than 2 MW in size are also helping to catapult Japan’s solar energy sector forward.

Government policy is in clear support of solar energy projects while Japan grapples with severe energy shortages following its renunciation of nuclear power.