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There are several reasons why the Japanese PV market is the world's largest. One is the government's commitment to this technology, just highlighted in December when it approved a record budget for PV systems R&D and market introduction measures for PV and other renewable energies for FY 2001. The amount, „61 billion JPY ($395.4 million USD), even tops the Ministry of Economy, Trade and Industry's (METI) request, which was for only „59.5 billion. A more detailed look at the final budget reveals that pure PV-related funding was slightly reduced compared to METI's proposal, while more money than requested will be pumped into introduction measures for renewable energies. However, Japan's residential rooftop program, a main reason for the success of PV there, will receive over 60 percent more funding than in FY 2000; the amount of „23.51 billion ($202 million) is nearly half the total amount earmarked for Germany's 100,000 Roofs Program. Since a recent revision of the funding guidelines will reduce the amount paid from the current „180,000 ($1,547) per kilowatt to „120,000 ($1,031) per kilowatt, the „23.51 billion should be enough for investments in PV installations of nearly 200 MW. Although satisfied with the funding increase for residential PV systems, Osamu Ikki, publisher of the Japanese industry newsletter »PV Activities in Japan,« complains about halving the budget for the PV Field Test Program for Industrial Use from „4 billion ($34.4 million) to „1.99 billion ($17.1 million). »We are disappointed at such a big decrease, since more private companies are becoming interested in PV.« Surprisingly, the money requested to develop PV systems for space applications has not been approved, while the R&D and technology-related areas for PV solar cells were reduced. As PV subsidy payments are supposed to finish by the end of FY 2002 (see PI 9/2000, p. 24), the federal government is probably trying to establish new structures with its decision to increase METI's FY 2001 requests for new renewable energy companies from „13.49 billion ($115.96 million) to „14.04 billion ($120.68 million). Moreover, it seems to be encouraging local governments to set up their own funding tools: the requested „11.01 billion ($94.64 million) was increased to „11.5 billion ($98.85 million), even though it already represented a near-doubling of last year's „6.43 billion ($55.27 million). Michael
Schmela
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