Japan Renewable Energy Market Overview, 2030

Japan's renewable energy sector has expanded considerably, motivated by the necessity for energy security, combating climate change, and shifts in energy policy following Fukushima. The nation has adopted a range of renewable sources, such as solar, wind, hydro, geothermal, and biomass, with aspirations for a carbon-neutral society by 2050. Japan's path with renewable energy commenced with hydroelectric power in the early 20th century, which was pivotal for electrification. After World War II, hydropower continued to be a major energy source. In the 1970s, the global oil crisis highlighted Japan's reliance on imported fossil fuels, leading to increased investments in alternative energy sources, including renewables. The Fukushima Daiichi nuclear catastrophe in 2011 marked a crucial turning point, resulting in a sharp decline in nuclear energy and a transition towards renewables. The government launched the Feed-in Tariff (FIT) scheme in 2012, promoting investments in renewable energy, especially solar power, which experienced significant growth. As of 2023, renewable energy constitutes roughly 23% of Japan's electricity production. Solar energy leads the way, accounting for around 9% of the total, aided by the FIT and enhanced photovoltaic technologies. Wind energy is on the rise, with offshore wind becoming a primary focus. Hydropower, though well-established, remains essential, contributing over 8%. Biomass and geothermal energy, despite being underutilized, are starting to gain momentum with policy backing. Japan's renewable energy market encounters obstacles, including limited space for large-scale projects, grid integration challenges, and dependence on imported technology. Nevertheless, progress in offshore wind, floating solar, and energy storage technology presents considerable growth opportunities. The government's Green Growth Strategy and its pledge to achieve net-zero emissions by 2050 offer a strong foundation for market growth. Japan's renewable energy market continues to develop, balancing innovation, policy support, and sustainability objectives.

According to the research report, "Japan Renewable Energy Market Overview, 2030," published by Bonafide Research, the Japan Renewable Energy market is anticipated to add to more than USD 25.39 Billion by 2025–30. Japan's renewable energy sector offers a variety of prospects. Offshore wind energy has significant promise, especially with floating turbines, due to Japan's deep coastal waters. Advances in energy storage, smart grids, and hydrogen technology further facilitate the integration of renewables. Moreover, initiatives such as carbon neutrality goals by 2050 and subsidies motivate investments. Nonetheless, obstacles remain. Limited space for large-scale solar and wind developments, substantial initial expenses, and grid infrastructure constraints impede progress. Japan's dependence on imported renewable technologies and materials increases vulnerabilities. Striking a balance between rapid expansion, environmental preservation, and public acceptance also presents difficulties. Various elements propel the advancement of Japan's renewable energy sector. The aftermath of the Fukushima nuclear disaster increased awareness regarding energy security, accelerating the shift to renewables. Government programs, including the Feed-in Tariff (FIT) initiated in 2012, stimulated investment. Technological progress, diminishing costs for solar panels and wind turbines, along with corporate pledges towards sustainability, further invigorate market growth. Hydropower was Japan’s initial significant renewable energy source, playing an essential role in early electrification. Geothermal energy has been harnessed for a long time, with Japan ranking among the top global holders of geothermal resources. The solar energy sector gained traction following the FIT implementation, positioning Japan as a leading nation in photovoltaic installations worldwide. Offshore wind and biomass represent more recent additions to the renewable energy portfolio. Government initiatives, global partnerships, and corporate sustainability efforts advocate for renewables. Public-private collaborations and events like the Tokyo Olympics highlighted the importance of clean energy. Marketing strategies emphasize sustainability, energy autonomy, and Japan’s leadership in innovation. Companies also capitalize on consumer enthusiasm for eco-friendly options, providing energy-efficient products and services.

Japan's renewable energy market consists of various sources, each playing a distinct role in the nation's energy blend. Major types encompass hydropower, wind power, solar energy, bioenergy, geothermal, and others. Hydropower has served as a fundamental component of Japan’s renewable energy, providing more than 8% to electricity production. Large dams generate consistent energy, whereas small and micro-hydro initiatives aid in rural electrification. Although it is a well-established sector, advancements in efficiency and reducing environmental effects keep hydropower pertinent. Wind energy is on the rise, especially in offshore wind. Japan's geographical features, including deep coastal waters, make floating offshore wind turbines a significant focus. However, onshore wind development has progressed more slowly due to land limitations and regulatory challenges, while offshore initiatives are gaining governmental backing and attracting international investment. Solar power leads Japan's renewable sector, contributing approximately 9% of electricity generation. The Feed-in Tariff (FIT) scheme has sped up solar uptake, establishing Japan as a world leader in photovoltaic (PV) installations. Innovations like floating solar facilities optimize limited land resources. This segment is propelled by residential, commercial, and utility-scale installations. Bioenergy, produced from biomass and biogas, is increasingly recognized as a flexible renewable option. It facilitates waste management by utilizing agricultural byproducts, wood pellets, and municipal waste. Japan’s dependence on imported biomass brings challenges, but local initiatives are focused on improving domestic supply chains. Geothermal energy remains underused, despite Japan's rich resources. Regulatory obstacles, high startup costs, and local resistance near hot spring sites have restricted expansion. Nevertheless, governmental backing and technological improvements are beginning to unlock its possibilities. Newly emerging sources encompass hydrogen, wave, and tidal energy. Hydrogen, generated from renewables, presents an encouraging option for energy storage and transportation, in line with Japan’s policies centered on hydrogen. Japan's renewable energy blend showcases innovation and flexibility, which are essential for fulfilling its carbon neutrality aspirations.

The use of renewable energy in Japan is classified into three main end-user categories: industrial, residential, and commercial, each exhibiting unique traits and motivators. The industrial sector constitutes a major user of renewable energy, spurred by Japan’s energy-heavy manufacturing sectors. Numerous companies are shifting towards renewable energy to achieve sustainability objectives, lower carbon emissions, and adhere to environmental standards. Solar power, biomass, and geothermal energy are favored options because of their scalability and dependability. Larger industrial establishments are increasingly implementing on-site renewable energy systems, such as rooftop solar arrays and biomass energy facilities, to lessen reliance on the electricity grid and guarantee consistent energy availability. The residential sector has experienced a swift increase in the adoption of renewable energy, especially solar energy. Japan’s Feed-in Tariff (FIT) program encouraged households to set up rooftop solar panels, resulting in extensive adoption. The falling prices of photovoltaic (PV) systems, combined with progress in energy storage technologies like batteries, has additionally fueled residential uptake. Homeowners are driven by the dual advantages of lowering energy expenses and fostering a sustainable environment. Community-oriented renewable energy initiatives, including shared solar projects, are also becoming more prevalent in residential communities. The commercial sector, which encompasses offices, retail businesses, and hospitality venues, is progressively depending on renewable energy. Solar and wind energy are broadly implemented for their cost-efficiency and uncomplicated integration with existing systems. The commercial sector is also investigating cutting-edge solutions such as green hydrogen for energy requirements and adopting sustainability certifications that emphasize renewable energy usage. Hotels and resorts especially are utilizing renewable energy as a crucial component of their eco-tourism initiatives. The reliance on renewable energy across these end-user categories signifies Japan’s dedication to sustainability, with customized solutions that cater to the specific needs of each sector while aiding the nation’s objectives for carbon neutrality.


Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030



Aspects covered in this report
• Renewable Energy Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Hydropower
• Wind Power
• Solar Energy
• Bioenergy
• Geothermal
• Others

By End-User
• Industrial
• Residential
• Commercial

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.