While solar energy’s global momentum has accelerated, the sector development in Japan has been strained in recent years due to land, cost and local community issues. New installations in Japan dropped to only about 1.5% of the world’s total in FY2023, compared to 9.5% in FY2016.

Still, several factors suggest the declines in the Japanese market have peaked, and a revival in the pace of new development will follow. One of the drivers will be the underutilized rooftop solar market – for residential, public and industrial buildings. Another, a greater embrace of hybrid business models, such as agri-solar. On top of that, a nascent shift in solar technologies and materials is touted as the next cost efficiency opportunity.

Globally, solar PV now provides 6% of electricity. After a 68-year climb to reach 1 TW, solar doubled that capacity within two years and is projected to hit 8 TW installed by 2030, according to Global Solar Council figures. Within this decade, solar power generation is forecast to take a 12% share of the global electricity mix aided by growth trends also for batteries and storage.

In Japan, solar’s share hovers at around 10% of the mix, but the Cabinet’s newly approved Basic Energy Plan targets a 20–29% share by 2040. While challenges for embracing more solar power remain, especially in terms of grid connections and balancing, a rise in corporate interest in Power Purchasing Agreements (PPAs) and steps towards better integration of solar PVs with storage and public or industrial facilities are starting to pay dividends.