Japan is poised to overtake Germany and Italy to become the world's second-biggest market for solar power as incentives that started Sunday drive sales for equipment makers from Kyocera Corp. to China's Yingli Green Energy Holdings Co.
Industry Minister Yukio Edano on June 18 set a premium price for solar electricity that is about triple what industrial users now pay for conventional power. That may spur at least ¥760 billion in new installations with 3.2 gigawatts of capacity, Bloomberg New Energy Finance forecast. The total is about equal to the output of three atomic reactors.
"The tariff is very attractive," said Mina Sekiguchi, associate partner and head of energy and infrastructure at KPMG in Japan. "The rate reflects the government's intention to set up many solar power stations very quickly."