Solar PV Boosts Japan’s Energy Security and Economy

Solar photovoltaic (PV) technology in Japan has faced unwarranted criticism due to its association with China, a country with strained relations. China’s dominant position in the global solar PV supply chain is a concern, but a thorough examination of energy policies is necessary beyond this lens. Solar PV plays a crucial role in enhancing Japan’s energy security and economy. Notably, in 2024, Japanese manufacturers contributed to 34% of the domestic shipment of solar PV modules, including overseas production. While 78% of module imports in 2025 came from China, the rise of India as a new player in module manufacturing presents untapped diversification opportunities for Japan. Encouraging domestic production through suitable support mechanisms and implementing recycling programs can significantly reduce the need for additional imports. Solar PV stands out as the most cost-effective electricity generation technology in Japan, extracting significant economic value within the country.

Diversification of photovoltaic module imports and fostering domestic production are essential for Japan’s energy landscape. The Japan Photovoltaic Energy Association reported that Japanese companies manufactured over one-third of solar PV modules shipped to Japan in 2024. Although much of the production by Japanese companies occurs overseas, the country’s dependency on foreign entities to meet domestic demand is not overly concerning. Notably, Japan has primarily imported modules from China and Southeast Asia, and there is potential to diversify imports by engaging with India, a significant module manufacturer. As India seeks to expand its market beyond the United States due to recent tariffs, a bilateral trade relationship with Japan could be mutually beneficial.

However, a key challenge lies in the fact that Japanese manufacturers currently focus solely on cell and module production, lacking control over upstream supply chain components like polysilicon and wafers. To address this, the Japanese government could implement policies to stimulate production in these segments, either through local companies or by attracting foreign entities to establish a presence in Japan. In the United States, investment tax credits have successfully revived domestic production of ingots and wafers, showcasing the potential for similar incentives in Japan.

Recycling initiatives can significantly reduce the reliance on raw material imports for solar PV modules. Unlike fossil fuels, solar PV modules are a one-time investment that generates electricity over a prolonged lifespan. Recycling modules allows for the recovery of valuable materials like copper and aluminum, which are scarce in Japan. Companies like Hamada Corporation have set up recycling facilities to process module waste, contributing to a circular economy model. While closed-loop recycling presents an opportunity to recover materials and reintegrate them into new module production, technical complexity and profitability remain significant challenges that need to be addressed in the industry.