Japan PV cell makers to boost output by 37% Y/Y in FY 2013/14 - report

Jul 1, 2013 - Five of the largest solar cell makers in Japan plan to hike their combined production by about 37% in fiscal 2013/14 as compared to a year ago, the Nikkei wrote on Sunday.

Helped by the appealing feed-in-tariffs (FiTs) for clean energy in the country, the companies intend to deliver 4.7 million kW of solar cells in the current financial year through March 2014, with about 90% of the output expected to be supplied to the domestic market.

Among the firms are Japanese electronics major Sharp Corp (TYO:6753), which intends to boost its output by 20%. Peers Panasonic Corp (TYO:6752) and Kyocera Corp (TYO:6971) expect to raise their sales of solar cells by 25% on the year. Japanese solar module maker Solar Frontier, part of Showa Shell Sekiyu KK (TYO:5002), plans to lift its output by 80%, while Mitsubishi Electric Corp (TYO:6503) will invest about JPY 500 million (USD 5m/EUR 3.8m) to expand the production at its Nagaokakyo plant in Kyoto prefecture by 80%.

In the meantime, foreign companies are aiming to strengthen their business in Japan as the planned capacity hikes are still not enough to meet growing electricity demand in Japan. Foreign firms intend to boost their combined market share in Japan to more than 30% this year from 23% in fiscal 2012/13, the Nikkei said.

Japan introduced attractive feed-in tariffs (FiTs) for renewable energy in July 2012 in an effort to lower dependence on nuclear energy following the Fukushima accident and nuclear crisis in March 2011. Although the country approved a 10% cut in the FiT for solar electricity to JPY 37.8 per kWh as of April 1, the move did not affect the huge interest the market has already attracted. A market study of IMS Research, released in March, says that Japan is to install over 5 GW of solar PV capacity in 2013 or more than Germany, Italy or the US each.

(JPY 100 = USD 1.007/EUR 0.772)

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