The government’s scaling back of a program encouraging residential solar power has Panasonic Corp. hopeful the market for home energy storage systems is about to receive a boost.
In 2019, a program designed to buy back solar power flowing from rooftop panels at above-market rates will start becoming less enticing, potentially leaving homeowners who signed up with excess power on their hands. Osaka-based Panasonic is anticipating that installations of energy storage systems combined with solar panels will rise as a result.
Panasonic has been selling residential energy storage systems that include a battery and an inverter since 2012. In April, it will begin offering a new model a third the size of the current version while also being able to be hung on an outer wall and installed using fewer parts.
“We are counting on more people preferring to consume electricity produced from their home solar panels on site, rather than selling it to power companies” once their incentives expire, said Ryo Matsumoto, in charge of business planning and development at Panasonic’s Eco Solutions unit. “We are seeing 2019 as a turning point.”
The new model with an inverter and a 5.6 kilowatt-hour storage battery will sell for ¥1.69 million, according to Panasonic, which makes solar panels and lithium-ion batteries.
Tesla Inc., the electric carmaker and renewable energy company led by Elon Musk, is offering a 14 kilowatt-hour Powerwall storage system for ¥873,000, according to the company’s website. Tesla began mass production of batteries for energy storage with Panasonic at its Gigafactory in Nevada earlier this year.
In November 2009, the government began a program to buy excess power from rooftop solar at above-market rates in order to promote photovoltaic power. Utilities bought solar power from residential rooftops at ¥48 a kilowatt-hour for 10 years.
Following the 2011 Fukushima nuclear disaster, the government introduced a wider incentive program for clean energy. Currently, rates for residential solar are as low as ¥31, while solar rates for larger projects are at ¥24.
The incentives expanded Japan’s residential solar, with cumulative capacity increased from 2.7 gigawatts in 2009 to about 11 gigawatts in 2016, according to data from Bloomberg New Energy Finance.
The expiration of incentives beginning in 2019 is expected to provide business opportunities, said Takashi Hokiyama, a spokesman for the Japan Photovoltaic Energy Association.
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