Japan Adds Around 5.8 GW of Solar in 2025, Total Capacity Likely Surpasses 100 GW

Industry estimates indicate that Japan installed around 5.8 GW to 6 GW of new solar capacity in 2025, bringing the country’s total cumulative solar capacity likely beyond 100 GW. 

 

 

According to estimates from Tokyo-based solar consultancy RTS Corp, the newly installed capacity in 2025 included about 1.6 GW of residential PV, 2 GW of commercial and industrial (C&I) projects, and 2.2 GW of utility-scale installations with capacities of 1 MW or larger. The breakdown highlights the growing role of distributed solar alongside large-scale projects. 

 

Japan’s solar market has maintained relatively stable growth in recent years. Data from the International Energy Agency’s Photovoltaic Power Systems Programme (IEA-PVPS) shows that Japan reached around 100 GW of cumulative installed solar capacity by the end of 2024, with 5.5 GW added that year, compared with 6.2 GW installed in 2023.

 

Analysts say government support mechanisms remain a major driver of the market. In 2025, feed-in tariffs (FiT) and feed-in premiums (FiP) continued to support project development. At the same time, corporate power purchase agreements (PPAs) are increasingly being signed outside the FiT and FiP schemes, particularly in the C&I and utility-scale segments.

 

The residential solar market also saw stronger demand last year. One key factor was a new policy introduced by the Tokyo metropolitan government in April requiring solar panels to be installed on newly built homes. Kawasaki City has introduced similar measures.

 

Looking ahead, industry observers expect solar installations in 2026 to remain at a level similar to 2025, although some pre-installation activity could occur ahead of policy changes. The government has decided to phase out FiT and FiP support for solar systems of 10 kW or larger starting in fiscal year 2027. In addition, authorities announced stricter oversight of utility-scale projects in December.

 

Despite these policy adjustments, solar is expected to play a central role in Japan’s long-term energy strategy. In the country’s seventh Strategic Energy Plan finalized in February 2025, the government set a target for renewables to account for 40% to 50% of the power mix by 2040. Within that share, solar power is expected to contribute 23% to 29% of electricity generation, equivalent to 203 GW to 280 GW of installed capacity, making it the largest power source in the future energy mix.

 

Meanwhile, the industry is also exploring new growth areas. Analysts note that agrivoltaics could offer significant potential in Japan, although regulators suspended incentive support for more than 300 agrivoltaic projects in mid-2024.

 

Japan also held four utility-scale solar auctions in 2025. The 23rd auction awarded 93 MW at an average price of JPY 5.06/kWh, while the 24th auction procured 79 MW at JPY 4.06/kWh. The 26th auction resulted in contracts for 75.3 MW with an average price of JPY 7.13/kWh. The application process for the 27th auction opened in January 2026.

 

In addition to conventional PV deployment, Japan is accelerating the development of next-generation technologies. In September 2025, the government launched a subsidy program to promote perovskite solar technology, aiming to achieve 20 GW of installed perovskite capacity by 2040.