JAPAN SOLAR INVERTER MARKET

Japan solar inverter market is projected to grow at a robust CAGR during the forecast period primarily driven by the nation’s strong dedication to renewable energy, technological innovations, and government initiatives aimed at decreasing dependence on fossil fuels.

Major Japan Solar Inverter Market Drivers and Emerging Trends

The World Population Review reports that Japan’s solar power capacity hit 78,833 MW in 2022. Japan’s exceptional solar power capacity is a result of advantageous government regulations, high electricity costs, and a robust focus on maintaining energy security. Increased solar investments in solar PV systems by residences and utilities in Japan are fueling a growing requirement for solar inverters to capitalize on the nation’s rich solar resources.

Japan solar inverter market size expansion is marked by the extensive adoption of cutting-edge technologies including string and hybrid inverters which are compatible with energy storage systems. In a country where optimizing energy efficiency and maintaining a dependable power supply are essential because of the dense population and restricted land availability, these technologies are crucial. With the increasing use of solar power in conjunction with energy management solutions, there is a growing need for inverters capable of managing and optimizing energy flow which contributes to grid stability.

 Government backing for renewable energy through mechanisms like feed-in tariffs (FIT) and various measures has been instrumental in driving Japan solar inverter market growth. Following the Fukushima disaster, the country embarked on a plan to significantly boost the proportion of renewable energy in its electricity mix that had been remarkably low. The implementation of an exceptionally high FIT of 52 cents per kWh is likely to cause a dramatic rise in solar demand in Japan. The country is not only a major player in the global solar market but also has a substantial solar manufacturing sector.

This scenario creates ideal conditions for a subsidy-led solar surge similar to the experiences in the Czech Republic and Spain which had detrimental effects. Japanese solar industry leaders like Sharp and Mitsubishi are poised to gain the most. Even though their solar panel prices are much higher in comparison to international leaders, Japanese companies are still positioned to benefit. This is due to implicit barriers Japan has set up which makes it challenging for non-Japanese firms like First Solar and Sunpower to gain a substantial foothold in the market.

While Japanese companies are under strain from affordable imports from Asia, solar inverter firms in Japan are experiencing the positive challenge of supply shortages. The reason for this is that Japan mandates certification of PV inverters by the Electrical Safety and Environment Technology Laboratories. Many major international solar inverter firms lack this certification which gives local companies a significant advantage. The solar market in Japan is expected to experience substantial growth due to the government’s generous subsidies that could yield returns of about 30 percent. Despite international solar panel manufacturers’ excitement over the potential expansion, the companies encounter a major barrier with the certification requirement.

Japan solar inverter market also encounters challenges such as the necessity to lower costs and resolve the technical issues associated with large solar power integration into the grid. Furthermore, the decline in FIT rates and the trend toward self-consumption models are impacting market conditions. Even with these challenges, the market is anticipated to maintain its growth trajectory propelled by ongoing technological innovations, favorable government policies, and Japan’s strong dedication to renewable energy.

Based on the product type, central solar inverters are projected to grow due to their substantial presence in the industry. They are typically utilized in medium-sized industrial and commercial settings which includes office buildings and extensive solar projects. Installing solar panels on rooftops helps in providing a continuous and reliable power supply. String-type inverters follow in market segmentation. They are economically advantageous and easy to install in various residential and commercial environments. These solar PV inverters are also effective by design.

Based on the end-use, the market is categorized into utilities, commercial, and industrial sectors. The utilities are forecasted to be the leading segment due to their use in power grids and their role in supplying electricity to isolated areas.

Segments covered in the Report:

The Japan Solar Inverter Market has been segmented on the basis of inverter type and application. Based on the inverter type, the market is segmented into central inverters, string inverters, micro inverters. Based on the connection type, the market is segmented into On-Grid Connection and Off-Grid Connection. Based on the application, the market is segmented into residential, commercial and industrial, utility-scale.

Market Segmentation

Japan Solar Inverter Market by Inverter Type

• • Central Inverters
  • String Inverters
  • Micro Inverters

Japan Solar Inverter Market by Connection Type

• • On-Grid Connection
  • Off-Grid Connection

Japan Solar Inverter Market by Application

• • Residential
  • Commercial and Industrial
  • Utility-scale