Solar energy's lack of efficiency a threat to its survival in Japan
Japan’s booming solar industry may be going bust due to subsidy cuts and power grid issues that have prompted 91 different solar power bankruptcies since 2013, according to an article published Wednesday in Bloomberg.If solar were more efficient it could compete without subsidies. This just highlights the fact that alternative energy has not become more competitive even with falling prices.
Japan’s attempts to subsidize solar power haven’t gone well. The country still imports $40 billion worth of oil, coal and natural gas annually and the solar industry appears set to collapse.
“As the declining volume of PV module shipments shows, the market is shrinking,” Takehiro Kawahara, an analyst for Bloomberg New Energy Finance, said Wednesday. “[T]he shrinking domestic market forces them to lower costs to remain in competition with international players or consider exiting the segment.”