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In 2022, the average sales price for solar photovoltaic (PV) modules amounted to ** Japanese yen per watt, reaching a decade low. PV modules are comprised of several solar cells, which convert radiation and heat from the sun into electricity by using semiconducting materials. The electricity generation process of PV systems is entirely carbon neutral.

Solar energy in Japan

In recent years, solar energy represented the largest renewable energy source in Japan and had the highest number of renewable electric power stations. Since the mountainous island nation has limited space on land, it currently invests in floating solar panels.
In 2015, the government cut the purchase price of electricity generated from solar energy. Since the sales price of solar PV modules decreased as well, this resulted in a long-term decline in solar power costs.

Renewable energy in Japan

To reduce greenhouse gas emissions, and be more independent of fossil fuel imports, the Japanese government currently aims to replace fossil fuels with renewables and nuclear energy. Fossil fuels remained the largest energy source in electricity production, but the share of renewables increased to close to ** percent in recent years.