Up until now, Japan’s major power utilities haven’t been big solar generation enthusiasts, only building a tiny fraction of the country’s solar farms. However, the companies are now taking a different position specifically on residential solar.

Since rooftop solar is a major component of government plans to boost Japan’s renewable energy capacity, legacy regional power utilities are forming alliances with local and large homebuilders and construction companies with the goal of expanding the use of solar generation at the residential level and to make rooftop solar an attractive proposition. The utilities are especially focusing on the “no- upfront-costs” pricing plans.

As the government moves to make solar panels mandatory for new homes, while also committing to installing the equipment on public buildings, solar capacity is poised for renewed growth due to factors different than those which drove the sector to triple in the past decade.

For the major electric power companies, the EPCos, this presents an attractive opportunity to lock in consumers to multi-decade plans, while also guaranteeing steady returns.