Japan brought back national solar subsidies in January and, so far, the response has been a bit underwhelming.
The government is providing 70,000 yen ($700) per kilowatt for installing a solar energy system, or roughly 10 percent of a 3.5-kilowatt system. It thought the program would attract 35,000 applications for the first three months of this year.
The Japan Photovoltaic Energy Association said the program drew 21,653 applications instead, reported Reuters. Consumers apparently don’t want to spend money on a solar energy system when the economy is bad.
The government brought back the subsidies after discontinuing it several years ago. Cutting the program led to a decline of solar power installations. When Japan was looking at resurrecting the subsidies last year, government officials said they believed the decision to end the incentive program had hurt Japanese solar energy equipment makers.
Countries that have enacted generous solar incentives, such as Germany and Spain, have seen a growth of homegrown solar cell and panel makers. The government programs don’t require project developers to buy equipment from only domestic manufactures. But those local companies could enjoy some home-territory advantage.
U.S. manufacturers are hoping that the federal subsidies that are in place will boost their business as well. There is a 30 percent tax credit for offsetting the cost of installing a solar energy system at home. Owners of the commercial systems could take either a 30 percent tax credit or the equivalent in cash.




