Policy
Japan Cuts Silicon Subsidies, Boosts Perovskite
Japan Stops New Silicon Subsidies in FY2027
Japan’s Ministry of the Environment announced that, starting in fiscal year 2027, purchase subsidies for conventional silicon solar panels will no longer be available for newly installed systems. The move is framed as a response to the steep decline in silicon‑panel costs and a desire to re‑allocate public funds toward emerging technologies.
Perovskite Gets Quadruple Funding and New Targets
At the same time, the ministry is earmarking a substantial amount of funding for perovskite solar‑cell support in FY 2027. The funding boost aligns with METI’s November 2024 plan to roll out around 20 GW of perovskite‑based PV by 2040, signalling a clear national ambition to lead the next‑generation solar market.
Why Perovskite Over Silicon? Flexibility and Competitiveness
Perovskite cells are lightweight, flexible and can be produced on thin‑film substrates, making them suitable for rooftops, façades, and other locations where rigid silicon panels are hard to install. Japan also controls roughly 30 % of the world’s iodine supply, a key raw material for perovskite, giving it a strategic advantage in scaling the technology.
Japan’s R&D Push: NEDO Six‑Year Program
In October 2025, the New Energy and Industrial Technology Development Organization (NEDO) launched a six‑year R&D programme to commercialise large‑scale tandem perovskite cells. The programme outlines 24 research themes for 2025‑2029, covering everything from cell efficiency to grid‑integration and recycling, and ties directly into Japan’s 2050 carbon‑neutrality goal.
What It Means for Israel
For Israeli homeowners, the shift underscores how policy can accelerate technology adoption. Using typical Israeli figures – a 10 kWp rooftop system in the central region yields about 17 000 kWh / year (1 700 kWh per kWp) and earns roughly ₪8 160 annually at the residential ₪0.48/kWh tariff. With a ₪31 500 installation cost (₪3 150 / kWp), the simple payback is ≈3.9 years. If perovskite modules achieve comparable efficiencies at lower weight and potentially lower balance‑of‑system costs, Israeli payback periods could shrink further, making rooftop solar even more attractive.
Outlook: Global Solar Landscape
Japan’s policy pivot is likely to ripple through the global supply chain. By withdrawing silicon subsidies and increasing support for perovskite, the country aims to secure a first‑mover advantage, stimulate domestic manufacturing, and create export opportunities. Other nations watching Japan may consider similar incentives, especially as perovskite efficiencies continue to improve in laboratory research.
Sources:
- Perovskite‑Info – Japan ends silicon subsidies, quadruples perovskite support
- IndexBox – Japan’s new guidelines for flexible solar panels
- The Japan Times – Japan to end subsidies for solar panels
Sources & further reading
- Japan to end silicon solar panel subsidies, quadruple perovskite support for FY2027 | Perovskite-Info
- Japan's New Guidelines for Flexible Solar Panels: Perovskite & Thin-Film – News and Statistics – IndexBox | Solar Now
- News - Japan Launches Subsidies for Perovskite Solar & Battery Storage
- Japan to end subsidies for solar panels - The Japan Times
FAQ
When will Japan stop subsidising silicon solar panels?
The Ministry of the Environment says the subsidy will end for new silicon installations beginning in fiscal year 2027.
How much money is Japan allocating to perovskite solar cells?
Roughly 28 billion yen for FY 2027, about four times the previous perovskite budget.
What is Japan’s target for perovskite PV capacity?
METI aims to deploy around 20 GW of perovskite‑based solar power by 2040.
Why is perovskite considered advantageous over silicon?
Perovskite panels are lightweight, flexible, and can be produced on thin‑film substrates, making them easier to install on complex surfaces.
How could this policy change affect Israeli rooftop solar owners?
If perovskite modules lower balance‑of‑system costs, the typical 10 kWp home system could see a payback under four years, even faster than today’s silicon setups.
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