Japanese Market Watch: Solar Power Generation for Household

It has been over 3 years since subsidy offering for house hold solar power generation system implementation started. As of May 2012, the number of household with solar power generation system has reached 1 million in Japan.

Although many Japanese manufacturers entered into this market in the past 3 years, the market is not in an excellent condition due to influence of Chinese manufacturers and unstable European economy.

Teikoku Databank conducted market analysis focused on the manufactures in Japan.

The number of cell/module maker increased to 30 as of June 2012 compared to 21 in April 2009. There were 222 Manufacturers of other parts and materials in April 2009, now it has increased to 374 (June 2012). The number of manufacturers of solar power generation and parts manufacturing machinery has almost doubled from 310 in April 2009 to 617 in June 2012.

In 2012, majority of module manufacturers are in Kinki region (Western Japan) as well as production capacity in Kinki region since there are facilities of Sharp and Sanyo.

In terms of sales, rate of average sales of cell/module makers has increased by 17.3%; however,  the rate of  average sales of Manufacturers of other parts and materials has decreased by 4.8% and also decreased by 7.8% for  manufacturers of solar power generation and parts manufacturing machinery.

The rate of average ordinary gain for cell/module makers is down by 3.5%, up by 51.1% for  Manufacturers of other parts and materials and up by 8.9%  manufacturers of solar power generation and parts manufacturing machinery.

today, more and more chemical manufacturing companies are entering to cell/module manufacturing business: 33% of total cell/module manufacturers are chemical companies.

Although the market itself seems to be shrinking in terms of profitability and production, some companies are being smart by directly dealing with module manufacturers and growing in this market.

 

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