– Japan should halve the price of solar panels for households in three to five years, a Ministry of Economy, Trade and Industry panel said on Tuesday, suggesting it may recommend bringing back subsidies for solar power equipment.
Japan, the world's biggest supplier of solar cells, has watched domestic solar power demand dry up after it pulled the plug on subsidies in March 2006, hurting solar equipment firms' ability to invest in research and expansion abroad.
"Considering that household solar power use has fallen dramatically since the country ended subsidies in the 2005 business year (ending in March 2006), it is necessary for the nation to discuss reimplementing drastic measures," a METI panel on new energy sources said in a draft proposal.
The panel was considering subsidies and tax breaks that could halve the cost of putting solar panels on houses, a ministry official told Reuters on Monday, but it was unclear whether it would back such steps.
Tokyo's move to scrap subsidies helped Germany's Q-Cells AG (QCEG.DE: Quote, Profile, Research) overtake Japan's Sharp Corp (6753.T: Quote, Profile, Research) as the No. 1 supplier of solar cells in 2007, while China's Suntech Power Holdings Co Ltd (STP.N: Quote, Profile, Research) nudged Kyocera Corp (6971.T: Quote, Profile, Research) out of third place, analysts said.
Prime Minister Yasuo Fukuda on June 9 announced a long-term goal to cut greenhouse gas emissions by 60-80 percent from current levels by 2050.
The initiative includes a target to have more than 70 percent of newly built houses equipped with solar panels by 2020.
