Japan imports a lot of its raw materials and fossil fuels are no exception. The country however is the 2nd largest global market for solar energy, and is home to some of the largest solar component manufacturers, including Sanyo, Kyocera, and Sharp.
The Japanese government will introduce tax credits and subsidies to encourage household use of solar energy starting next year. The details will be determined in August when the budget is created. The incentive will decrease the cost of a solar photovoltaic system by an estimated 50% within 3 to 5 years.
This initiative will make solar energy especially appealing because the cost of electricity in Japan is already over $.20 a kWh. This is roughly double the rate of electricity found in many areas of the US. Increased production of solar components can help the cost to decrease by creating an economy of scale. This solar incentive will also assist Japan in becoming more energy independent and less reliant on volatile fossil fuel markets.