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Japan PV market demand may drastically fall in 2015, say Taiwan makers

Nuying Huang, Taipei; Adam Hwang, DIGITIMES [Monday 7 July 2014]

The Japan government is likely to reduce in feed-in tariff rates for PV systems with installation capacities over 1MWp in fiscal year 2015 (April 2015-March 2016) and consequently, total installation capacity a year may drop from 7GWp in 2013 and 2014 to 3-3.5GWp, according to industry sources.

Japan's Ministry of Economy, Trade and Industry in June canceled certification for 144 projects setting up PV power-generating stations with a total installation capacity of 290MWp, seeming to pave the way for cutting feed-in tariffs, the sources said.

Among Japan-based PV vendors, only Kyocera undertakes in-house production of PV modules, while Sharp, Panasonic, Mitsubishi and Toshiba mainly outsource PV module production to China- and Taiwan-based makers, the sources indicated. Therefore, China- and Taiwan-based PV module makers are subject to risks arising from shrinking demand in Japan, the sources noted.

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