Japan Adding More Solar Before 2021

Japan is expected to add more solar capacity by the end of 2020, a good move in the shift toward renewable energy. Check out what to expect with solar growth!


It seems as though usage is growing in popularity across the globe. As a matter of fact, solar is even being used to help those in disaster and crisis areas. Solar has been used to provide power to hospitals in disaster areas, for example, helping to literally save lives. Now, ’s solar sector is anticipated to grow, at least prior to 2021. The solar industry is planning on adding 17 gigawatts worth of fresh solar capacity in less than two years. Where is this information coming from? Who is predicting temporary solar growth? Check it out!

Japan’s Solar Sector to Grow Before Potential Slowdown

, US credit, macro, and industry solutions firm and part of the Fitch Group, recently distributed an innovative Industry Trend Analysis. This Trend Analysis was for Japan’s solar sector, and the prediction is that growth in Japan’s solar energy sector is going to slow down over the upcoming decade. This could be in part because feed-in tariffs for solar installations will be reduced by half by the time we get into the middle of the 2020s. In addition, a transition is being made to economical auctions for utility-scale solar power capacity. Going from feed-in tariffs to economical auctions, coupled with cutbacks, is supposed to address the high price of subsidizing Japan’s solar power industry. Regardless, solar growth in Japan went from 13.6 GW (five years ago) to more than 48.5 GW by the end of last year, so we are looking at one of the quickest developing solar sectors on the planet.

In a nutshell, because of land availability, lower costs at auctions and grid restraints, solar growth could slow down a little bit from 2021-2027. Of course, things can change, especially as we learn more about renewable energy and discover unique ways of using it. But in the meantime, the expectation (according to Fitch) is that somewhere around 14 GW of new solar installations will be deployed from 2021-2027. A Fitch analyst discussed their vigilant outlook, stating the longstanding course of the solar sector “is also informed by the sharp decline facing the feed-in tariffs available to residential and company-level solar power projects.”

The Bright Side: Solar Will Continue to Shine in Japan, for Now

There will continue to be robust growth in the meantime, and the expectation (according to Fitch Solutions Macro Research) is that there will be another 17 GW worth of solar capacity brought online before the end of 2020. Another 17 GW of solar PV plants being connected to the Japanese grid is certainly a good thing.

The Japanese government has started to prioritize lessening retail electricity costs which is where the transition to competitive auctions comes from. The most recent auction, which took place this year, did not attract prosperous bidders. This was likely due to a disruption in rates provided by the government and the rates needed to entice developers. However, things are anticipated to go well for the third auction, which will occur this year. It is Fitch Solutions Macro Research’s belief, regardless, that over the next few years, Japan is going to add 17 GW to its solar sector.

Japan does have some of the highest solar power costs on the planet, and there is certainly work to be done with regard to this concept. The auction system was meant to remedy the situation. Clearly, there is still room for improvement.

Now, let’s compare some numbers.

Note: A watt is a measure of power and 1 GW has 1 billion watts. In the United States, 10 gigawatts of solar capacity was added in 2017, according to Seia.org. Solar is growing at an unparalleled rate here. Basically, this form of renewable energy is able to generate enough clean electricity to power over 11 million homes in America. The numbers are staggering. Clearly, just 1 GW is impactful. The fact that Japan will add the anticipated numbers is a positive move in the shift toward renewable energy.

There is a visible shift toward renewable energy happening across the planet. Keep following solar news to stay up to date with what is happening in other countries, too!








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