Japan
PV technology status and prospects
Ken-Ichiro Ogawa, NEDO, New Energy and Industrial Technology Development Organization 		home > annual reports > annual report 2001 >

Fig. 1 - Building material integrated PV system (9,5 kW) and light transparent type PV cell (1,9 kW)

General Framework

The promotion and deployment of photovoltaic (PV) systems have been implemented through the foresight for new energy in "The Total Primary Energy Supply Outlook" prepared by the Advisory Committee for Energy. The Outlook was reviewed in 2001 and the target for PV system introduction by FY2010 was revised to 4 820 MW from 5 000 MW. The Ministry of Economy, Trade and Industry (formerly the Ministry of International Trade and Industry) have been actively driving forward the promotion measures and policy for research and development for PV systems to achieve the introduction target. “The New Energy Law” established in 1997 stipulates the responsibility that national and local governments, energy consumers, energy suppliers and energy equipment manufacturers should be taking in order to introduce and expand new energy. In addition, the “Law Concerning Promotion Measures to Arrest Global Warming” and the "Law for Green Purchase" were enacted
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National Programme

The Government has implemented R&D, demonstration tests and promotion policies towards the achievement of targeted installed capacity of 4 820MW of PV systems by FY2010. In the field of R&D, technical development for cost reduction of PV systems and technology development for PV promotion are being done. Regarding demonstration tests, the following have been continued: the cost reduction demonstration test by standardization of PV systems for industrial use aiming at introduction and promotion of PV systems to private facilities and the demonstration test for new types of PV systems. As to promotion policy, the Residential PV System Dissemination Programme has been strongly moved forward. In addition, the Government has implemented supporting programmes for the introduction of new energy to local governments and private entrepreneurs.

The budgets for FY2001 of major National PV Programmes are as follows:

  1. Photovoltaic power generation technology research and development: 5 050 MJPY
  2. Technology development to deploy PV system: 1 310 MJPY
  3. Residential PV System Dissemination Programme: 23 510 MJPY
  4. Field Test Programme for industrial use: 1 990 MJPY
  5. Financial support for entrepreneurs introducing new energy: 14 040 MJPY
  6. Introduction and promotion of new energy at regional level: 11 500 MJPY
  7. Support for local efforts to develop the vision of new energy use and energy savings: 1 230 MJPY
  8. Support for local activities for new energy: 150 MJPY
  9. Support for local activities to introduce new energy new): 910 MJPY
The budgets for items 5, 6, 7, 8 and 9 include ones for PV and others for new energies.
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Fig. 2 - 84.7 kW Grid-connected PV system using ribbon type multi-crystalline silicon

Research, Development and Demonstration

The New Sunshine Project established in FY1993 to promote a comprehensive, long-term R&D has been completed, and a new technological programme was initiated in FY2001, based on the results obtained thus far.

The new "5-Year Plan for Photovoltaic Power Generation Technology Research and Development (FY2001-FY2005)" programme aims mainly at: improving the efficiency of R&D through "selection and concentration" of R&D themes; the early establishment of PV technology for the realization of approximately the same generation cost as the electricity rate for households; developing common basic technology necessary for full-scale deployment of PV applications; and developing essential technologies, PV cells and PV systems based on new conceptions. The development objectives of the programme are classified in the field of technology R&D as follows; the short- and medium-term targets are:

  1. the development of advanced PV cells,
  2. the development of technology focused on PV promotion, and
  3. the development of common basic technology necessary for full-scale deployment of PV applications.
The long-term target is technology R&D on innovative next generation PV systems. The main demonstration programme implemented by the Ministry of Economy, Trade and Industry (METI) in FY2001 was the

"PV Field Test for Industrial Use". This programme was started in FY1998 and is now entering its 4th year. Its aims are; (i) to install new types of PV system including building integrated PV systems and standardized PV systems with 10 kW power units in various applications for the industrial sector; (ii) to analyze the data collected under a long-term operation and to get ahead on introduction and expansion of PV systems in the industrial sector and (iii) to realize price down by standardization. Private companies, local public organizations and other organizations are eligible for subsidy. Half of PV installation costs are subsidized. 73 PV systems, totalling 1 940 kW in FY1998, 93 PV systems, totalling 2 790 kW in FY1999, and 149 PV systems, totalling 3 680 kW in FY2000 have been installed. In FY2001, 225 PV systems, 5 210 kW in total were accepted.

PV Field Tests for Public Facilities implemented since FY1992 achieved successfully the expected target and were completed in FY1997. Only acquisition and canalization of the operation data have been continued since FY1998 and were to be completed in FY2001. 1 830 PV systems, 4 900 kW were installed at schools, welfare facilities, factories, office buildings, private facilities under PV Field Tests for Public Facilities.
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Implementation

  1. The Ministry of Economy, Trade and Industry
    The main implementation programmes that were carried out in FY2001 were the "Residential PV System Dissemination Programme", the "Introduction and Promotion of New Energy at the Regional Level" and the "Financial Support for Entrepreneurs Introducing New Energy".

  2. The Ministry of Land, Infrastructure and Transport (formerly the Ministry of Construction)
    Under the "Guidelines for Planning Environmentally Friendly Government Facilities (Green Government Office Building)", construction of green government office buildings with PV system have been promoted.

  3. The Ministry of Posts and Telecommunications
    The Ministry initiated the "Environmentally-Friendly Facilities Provision Project" for the purpose of environmental protection in the community and is promoting the introduction of PV systems to post offices.

  4. The Ministry of Education, Culture, Sports, Science and Technology (formerly the Ministry of Education)
    The Ministry continues the "Eco-school Promotion Pilot Model Project" initiated in partnership with MITI (then) in FY1997 and is promoting the introduction of PV systems to elementary and junior high schools in Japan. 99 schools throughout Japan were designated as pilot model schools by FY2000, and 75 schools are scheduled to install PV systems with 10 kW and over.

    Fig.3 - 60 kW curtain wall type PV system and 16,7 kW skylight PV system.

  5. The Ministry of Environment (formerly the Environment Agency)
    The Ministry is promoting a project on CO2 emission reduction measures by use of natural energy under the "Basic Guideline for Promotion Measures to Arrest Global Warming" established in FY1986. In addition, the "Law for Green Purchase" came into force in April 2001, and commodities procured by the Government have to be replaced by environmental friendly products. Since PV systems are specified as special procurement products, the introduction of PV systems to national facilities is expected to increase.

  6. The Local Governments and Municipals
    As movements to grapple positively with environmental issues are spreading, there is an increase in some local governments and municipals to plan and implement the introduction of PV systems and develop their own plan under the Regional New Energy Introduction Vision. Some local governments and municipals also provide their own additional subsidy to public financing and their number is increasing year by year. Promotional supports to PV systems are enhanced at the level of local governments and municipals. As of April 2001, local governments who provided the subsidy for residential PV systems totalled 114 municipalities.

  7. Utilities
    Electric power companies continue the introduction of PV systems to their own facilities, and the net metering system with buy-back contracts for surplus PV electricity at the same rate as selling. As of the end of March 2000, the capacity installed to their facilities was 4 558 kW and the power bought by buy-back contract totalled 72 087 000 kWh.
    10 electric power companies in Japan established the “Green Power Fund” in October 2000, aimed at introducing and promoting PV systems and wind power systems. Electric power companies bill an additional charge as a contribution of 500 JPY/share/month to their supporters among their customers, and contribute the same endowment as the amount of their supporters’ contribution. The fund is used for installation of PV systems and wind power systems. In 2001, 39 public facilities throughout Japan, including schools, were subsidized through the Fund. The total capacity installed is 829 kW.

  8. Financial Institutions
    Some financial institutions, including banks, provide preferential financing at a low interest rate with the introduction of a residential PV system for private use.
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Industry Status

For several years, the PV industry has been rapidly growing through the measures of the "Residential PV System Dissemination Programme" and the "Field Test Programme for Industrial Use" by METI. Especially, the market for residential PV systems has been remarkably growing and playing a role of pushing the PV market in Japan. The annual production of PV cells in Japan increased from a 50 MW level in 1998 to a 100 MW level in 2000 and maintains its rising trend.

The main PV cell manufacturers are Sharp, Kyocera, Mitsubishi Electric, Sanyo Electric, Canon, Ka-neka, Matsushita Seiko, Matsushita Battery, Showa Shell Sekiyu and MSK. Furthermore, Kobe Steel and Kawasaki Heavy Industries have recently entered into the PV market in cooperation with overseas manufacturers. Mitsubishi Heavy Industries is planning to enter into the PV market as well. To correspond to the recent increase in PV cell demand, PV cell manufacturers in Japan have been positively expanding their production capacity. Sharp expanded their annual production capacity to 94 MW in 2001 and is planning a further increase in 2002. Mitsubishi Electric also expanded their annual production capacity to a 25 MW scale. Sanyo is constructing a new plant with an annual production capacity of 14 MW. Kawasaki Steel started commercially to produce Si feedstock for PV cell manufacturers. Furthermore, major housing manufacturers decided to adopt PV systems one after another since the Ministry of Construction approved PV modules as building materials, and to commercialize "the houses equipped with PV system as a standard specification". Especially Sekisui Chemical focuses on the sales of the houses equipped with PV systems as standard specifications. They succeeded in receiving an order for 10 000 houses in 2001. House roof installation maker, KUBOTA succeeded in receiving an order of roof-integrated PV systems for all 97 houses in housing and lot developments. Besides the above-mentioned manufacturers, there are also building material manufacturers, who produce roofing materials, outer wall materials and sheet glasses, and commercialize building materials integrated with PV cells. Moreover, some builders start to construct buildings integrating PV cells as "environmental co-existence" buildings. As previously noted, industry from different fields is commercializing products with PV cells, and therefore, the range of the PV industry is expanding.
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Fig.4 - 630 kW PV system, PV monument Solar Ark

Market Development

The initial market development for PV systems has increasingly made progress, in the market sector of private houses, public facilities, industrial facilities, traffic facilities, railroad facilities and commercial buildings through financial support to PV systems of METI.

Especially in the housing sector, marketing to new and existing houses is in satisfactory progress. The market scale of 3-5 kW residential PV systems has expanded to annual sales of 30 000 systems.

Also, in the sectors of public facilities, industrial facilities, commercial facilities and commercial buildings, the standardization of PV systems of 10 100 kW scale and development of novel type PV systems are being promoted. The market size for these sectors is estimated to be 500 to 1 000 systems annually. To correspond to the demand of above-mentioned sectors, PV cell manufacturers and building material makers commercialize thin type modules, lightweight modules, triangle modules, trapezoid modules, lighting type modules, coloured modules, flexible modules, roofing integrated modules, wall material integrated modules, and bifacial generation modules which meet user’s needs to improve design and function. Furthermore, there is a widespread trend that local governments enhance possibilities to install PV systems on schools, governmental offices, welfare facilities, hospitals, and community centres. Private enterprises are also promoting to apply PV systems to rooftops and roofs of their head office buildings, business offices, factories and warehouses. Some private enterprises are planning to introduce PV systems in a timely manner to restraints, railway stations, service stations, etc.

Additionally, off-grid non-domestic PV systems without governmental support are actively utilized as commercial power supply sources for telecommunications, traffic signs, telemetering, ventilating fans and lighting. Table 1 shows the cumulative installed PV power in four sub-markets.

Table 1: The cumulative installed PV power in 4 sub-markets in kWp
Sub-market/ application 1992 1993 1994 1995 1996 1997 1998 1999 2000
Off-grid domestic 150 200 250 300 350 400 450 500 550
Off-grid non-domestic 15 260 19 170 23 260 29 360 35 890 44 900 52 300 56 200 61 350
Grid-connected distributed 1 220 2 300 5 130 10 820 20 500 43 100 77 750 149 000 252 7000
Grid-connected centralized 2 370 2 600 2 600 2 900 2 900 2 900 2 900 2 900 2 900
Total 19 000 24 270 31 240 43 380 59 640 91 300 133 400 208 600 317 500
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Future Outlook

With backing to promotion and deployment of PV systems, publicity activities, promotional measures to arrest global warning, green purchase activities implemented by the Government’s policy, individuals, the government offices, local governments and private entrepreneurs have promoted a better understanding of the introduction of PV systems. With the growth of the PV market, PV cell manufacturers make an effort to expand their production capacity and to reduce PV system cost. The roofing industry, building material industry, housing industry, construction industry and power source equipment industry are stimulated to enter into the PV market. These sectors are expected to play an essential role in promoting PV systems as a go-between for the PV industry and end users. Therefore, the PV market, especially for residents, public facilities, commercial buildings and industrial facilities, will be deploying more and more, and is expected to grow to a self-sustaining market in the near future. METI is planning to prepare new systems such as a renewable portfolio system in order to achieve the introduction target of new energy by 2010.
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Further reading about Japan

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