Japan annouced it will reintroduce subsidies for its solar industry next year, according to a Reuters report.
The Asian nation has seen a downturn in its domestic solar industry since ending subsidies for the renewable energy technology in March 2006. Since that time, Japanese companies Sharp (TYO: 6753) and Kyocera (TYO: 6971) have lost their number 1 and number 3 rankings (respectively) as the world’s largest supplier of photovoltaic solar cells.
"We don’t want to depend on subsidies. We are hopeful that technology would eventually lower solar energy prices far enough that people will have an incentive to use it," Shoji Watanabe, who heads the Ministry of Economy, Trade and Industy’s (METI) new energy policy team, told Reuters.
"Until then, subsidies or other state support, such as tax breaks, are necessary," he said.
A METI panel said the Japanese government, with the help of Japanes solar companies, should aime to cut in half the price of residential solar panels in three to five years.
Watanabe said his ministry will submit plans for new residential and commercial subsidies in time for next year’s budget requests.
However, officials in the Finance Ministry have said they would not approve reinstating the same subsidies that were in place two years ago, meaning some compromise must be reached.
On June 9, Prime Minister Yasuo Fukuda anounced a slate of inititatives aimed at cutting Japan’s greenhouse gas emissions 60-80% by 2050. The initiatives include a goal of installing solar systems on 70% of all newly built homes.
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