Japan's solar PV market to grow by 120% in 2013, as per iSuppli

iSuppli reports Japanese photovoltaic (PV) market is set to grow by 120 percent in 2013 and install more than 5 gigawatts (GW) of new capacity. Installations expected to exceed 1 GW in the first quarter alone, causing it to become the second largest market in 2013, analyses iSuppli. Key findings and analysis shared by iSuppli's analysts includes: Overly Generous Incentives Spurs a Booming Market Japan’s PV market currently benefits from a feed-in tariff (FIT) paying up to ¥42 per kilowatt hour, even though this is likely to be reduced by approximately 10 percent beginning April 1. “At ¥42 Japan’s FIT is by far the most attractive globally—overly generous perhaps, which could lead to overheating of the market,” explained Ash Sharma, senior director of solar research at IHS. “And while a 10 percent reduction in tariffs is widely expected by industry players, this will have little effect on both internal rates of return and market demand. Furthermore, many systems that have already applied for the higher FIT are able to benefit from this rate of ¥42 even if they are installed after April 1,” The report reveals that installations are estimated at over 1 GW in the first quarter of 2013—the final quarter of Japan’s fiscal year—and forecast to exceed 5 GW for the whole of 2013. This would see Japan leapfrog ahead of Germany, Italy, and the U.S. to become the world’s...