Demand for solar cells as a renewable energy source will increase further as global energy resource prices soar and greenhouse gas emission reduction pressures continue to increase. To this end, Japanese companies have increased their solar cell production, expanded their export capabilities, and competed with European companies in order to regain their dominance in the global solar market.
At present, global solar cell manufacturers are mainly concentrated in Japan, Germany and the United States. At the beginning of this century, Japanese companies accounted for about half of the world's solar cell production. But in 2005, Japan was overtaken by Germany and lost its position as the world's largest producer of solar cells.
The International Energy Agency has predicted that by 2020, the solar cell market will grow at a rate of 20% per year. The Japanese private research company Fuchu City recently predicted that the global solar cell market will increase from 1.2008 trillion yen in 2007 to 4.6751 trillion yen in 2012. Specifically, by 2012, the market share of crystalline solar cells will drop from nearly 90% in 2007 to more than 70%, but the market size will expand to 3.4680 trillion yen. In the same period, the market for silicon-based solar cells with a silicon dioxide consumption of only 1% of crystalline solar cells will reach 559.5 billion yen, and the market size of thin-film compound solar cells will reach 299.8 billion yen, which is closer than 2007. 10 times and 25 times.
At the end of July, the Japanese government formulated a plan to achieve 10 times the current use of solar power in Japan by 2020 and 40 times by 2030. According to the plan, the Japanese government will provide financial support for the development and promotion of solar power technology, and strive to reduce the price of home solar power systems to half the current level within three to five years.
Japanese solar manufacturers have recently adjusted their production plans to increase production capacity in an effort to expand their global market share. Sanyo Electric Co., Ltd. invested billions of yen in a new production line at the assembly plant in Hungary, increasing its annual production capacity from 55,000 kilowatts to 145,000 kilowatts. Mitsubishi Electric Corporation has also invested 10 billion yen to build a new solar cell production line at the Iida Plant in Nagano Prefecture. It plans to increase its annual production capacity to 600,000 kilowatts by 2011, about three times the current level.
The huge market prospects have also attracted many Japanese companies to join the ranks of solar cell production. In October last year, Honda Corporation took solar cells as a new business, and its wholly-owned subsidiary started production in Otsu-cho, Kumamoto Prefecture and sold it in China. Recently, it plans to open up overseas markets such as Europe. Toshiba has also decided to join solar energy. The development and production of power generation systems is planned to achieve a 10% market share in Japan in 2010.
According to data released by the Japan Solar Power Association on August 20, Japanese domestic manufacturers' solar cell shipments increased by 36% from the same period of the previous year to 259,900 kilowatts from April to June this year. The association said that a sharp 45% increase in exports year-on-year was the main reason for the sharp increase in solar cell production in Japan.
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