It is expected to rise to 113GW in 2031.

Solar power is projected to record the “greatest” growth in this decade, driven by Japan’s renewables policy support, Fitch Solutions reported.

In a report, Fitch projected that the country’s solar power sector could grow to 113 gigawatts in 2031 from 71GW in end-2021.

“This is mainly supported by auction schemes that offer feed-in-tariffs and feed-in-premiums depending on the size of the project,” the report read in part.

“The highest and lowest bids for these auctions have experienced drops over the past auctions, and we believe this reflects the increasing attractiveness of the government's plan to reduce solar installation costs.”

In addition, Fitch noted the sector was also boosted by the solar rooftop mandate Tokyo implemented in December 2022, applicable to homes that will be built after April 2025.

“While this affects solar installations for the latter half of the decade, we believe that this move by Japan's largest city will set the precedence for other municipalities to follow, especially since it is the first of its kind to be passed in the market.”