As the feed-in tariff (FIT) rate of JPY42 (US$0.53)/kWh offered by the Japan government for installing solar PV systems has attracted many foreign suppliers of solar products which are significantly more competitive in price than Japan-made products, the subsidization is not expected to substantially benefit Japan's solar industry, according to industry sources s.
For this reason, the Japan government is expected to lower FIT rates as well as setting tangible or intangible barriers to block imported solar modules in March 2013 (the last month of 2012 fiscal year), the sources pointed out.
Industry sources noted that Japan-based solar module firms such as Sharp, Kyocera, and Panasonic have benefited directly by the FIT, but the number of firms benefiting is limited compared to the scope of Japan's solar supply chain.
Japan's solar supply chain has been known for having high production costs. This has been causing the supply chain to lack competitiveness against China- and Taiwan-based solar firms. The lucrative FIT rate is unlikely to push Japan-based firms to restart solar cell production.
Japan may set up protective measures for domestic solar industry
Photo: Digitimes file photo
Article translated by Jackie Chang
