Japan to end conventional solar panel subsidies

Japan's Ministry of the Environment plans to abolish subsidies for the purchase of conventional solar panels for new installations starting in fiscal 2027. The decision follows a significant decline in solar panel prices, making them more accessible without government financial aid.

Under the proposed plan, subsidies for the purchase of new conventional panels will cease, though aid for installation costs may remain available in principle. Ongoing projects will continue to receive support. The government intends to shift its financial focus toward promoting next-generation perovskite solar cells.

Perovskite cells are thin, lightweight, and flexible, allowing them to be installed on surfaces like building walls where traditional silicon-based panels are difficult to mount. Japan aims to leverage its position as the world's second-largest producer of iodine, a key material for perovskite cells, to strengthen industrial competitiveness and reduce reliance on imports, as China currently controls over 80 percent of the global conventional solar market.