Japan to Provide 100 Billion Yen in Subsidies for Next-Generation Perovskite Solar Cells, Ease Regulations

METI Announces
Japan Risks Losing Solar Cell Dominance to China
Invests in Perovskite, an Area of Japanese Strength

The Japanese government will provide subsidies totaling 100 billion yen to support mass production of perovskite, a next-generation solar cell. It also plans to ease related regulations to expand adoption once mass production begins. Japanese media described the move as an attempt by Japan, once a leader in the global solar market, to regain ground lost to China.

According to the Nihon Keizai Shimbun (Nikkei) on October 27, Japan's Ministry of Economy, Trade and Industry plans to select office equipment maker Ricoh and solar power equipment maker Joshu Sangyo as recipients of subsidies related to Green Transformation (GX). The government will provide the two companies with a combined total of about 100 billion yen through fiscal 2029, which runs from April 2029 to March 2030.

Perovskite is a next-generation solar cell that is lighter and more flexible than conventional silicon solar cells, allowing it to be installed on surfaces such as building exteriors. Ricoh is developing film-based solar cells using inkjet printing technology, while Joshu Sangyo plans to manufacture products that combine perovskite with conventional silicon solar panels, the Nikkei reported.

The Japanese government is making this large-scale investment to restore the competitiveness of its solar industry, which has fallen behind China. Japan once led the silicon solar panel market, but lost market share to low-cost Chinese products.

One advantage of perovskite is that Japan is the world's second-largest producer of iodine, its key raw material, after Chile, giving it an edge in sourcing supplies. Japanese companies can also draw on their strengths in high-performance films and thin-film processing technologies, making it relatively easy to build a domestic supply chain, according to assessments.

The government also plans to ease related regulations to expand adoption. During fiscal 2026, which runs from April 2026 to March 2027, it plans to revise the operational rules of the Factory Location Act so that solar cells installed on building walls can count toward requirements for green space and environmental facility areas. It will also revise fire safety guidelines to allow solar cells to be installed at gas stations and automobile factories without protective glass.

The government also plans to expand adoption by introducing perovskite at public facilities, including central government ministries, local government agencies and Self-Defense Forces bases. However, technological competition with Chinese companies remains a challenge. The Nikkei noted that while the Japanese government's large-scale support has some justification, there have been many past cases in which Japan failed to secure competitiveness despite investing massive subsidies in the semiconductor and display industries.

This content was produced with the assistance of AI translation services.