Japan Forward
Sekisui Chemical's film-type perovskite solar cell (Courtesy of the company)
Competition between Japan and China to develop and mass-produce next-generation perovskite solar cells is intensifying. According to private research firm Fuji Keizai, the global market is expected to reach ¥3.69 trillion (approximately $23 billion) by 2040.
Perovskite solar cells are a next-generation technology that generates electricity using a thin layer of coated perovskite, a crystalline material capable of converting sunlight into electricity.
The technology was developed in Japan by Professor Tsutomu Miyasaka, who is considered a Nobel Prize contender.
China is taking the lead in mass production through government support and massive investment, while Japanese companies are struggling to compete on price.
Japan, however, is seeking to differentiate itself through distinctive technologies, including lightweight, flexible film-type cells, and solar panels integrated into buildings.
Japan’s film-type cells are attracting particular attention because they can be installed on surfaces unsuitable for conventional solar panels. However, reducing manufacturing costs remains a challenge, partly because moisture-protection materials are expensive. The country produces approximately 30% of the world’s iodine, a key raw material used in the technology.
Perovskite solar cells are also among the 17 strategic sectors being promoted by Prime Minister Sanae Takaichi’s government, which aims to achieve 20 gigawatts of installed capacity by 2040.
Meanwhile, Chinese companies such as GCL Group announced in 2025 that they had begun operating production facilities with capacities of up to 1 gigawatt.
However, announced production capacity does not necessarily translate into actual output. Yohei Kawai of Fuji Keizai, who monitors Chinese manufacturers, says some factories operate at annual utilization rates of just a few percent, with even the highest remaining below 20%. He notes that these facilities cannot yet be considered fully operational mass-production plants and that product quality varies.
Chinese manufacturers are focusing on tandem cells, which combine different solar technologies to improve efficiency. By allowing each layer to absorb different wavelengths of sunlight, these cells can generate more electricity. However, their greater weight compared with conventional silicon panels limits their potential installation sites.
Kawai says some Chinese companies claim they can manufacture these cells at just two to three times the cost of conventional silicon models. They aim to bring prices down by leveraging the mass-production capabilities and procurement expertise developed through their silicon solar businesses.
He is skeptical that Japan can compete directly on price, saying, “If Japan tries to compete head-on, it probably won’t win.”
Japanese manufacturers are instead targeting applications where flexibility and lightweight design offer a competitive advantage.
Sekisui Chemical launched its film-type solar cell, SOLAFIL, this year. Its lightweight design makes it suitable for factory rooftops with weight restrictions, as well as curved surfaces.
The company plans to establish a mass-production line in Sakai, Osaka Prefecture, with an annual capacity of 100,000 kilowatts in fiscal 2027. It aims to generate more than ¥25 billion in sales and achieve operating profitability in fiscal 2028.
Panasonic Holdings also launched its first mass-produced power-generating glass building materials in September. The company has brought forward the start of full-scale mass production at its facility in Nagahama, Shiga Prefecture, by one year to April 2029. It hopes to incorporate the technology into windows, railings and other architectural features.
“We aim to make these products blend seamlessly into urban designs and enhance the value of buildings and streetscapes,” said Chief Technology Officer Tatsuo Ogawa.
Some experts believe Japanese manufacturers have an advantage in product quality. Ryo Tanaka, representative director of the Japan Perovskite Solar Cell Promotion Council, says early-generation Japanese models are considerably more reliable than their Chinese counterparts.
He also highlights the benefits of installing perovskite solar cells in areas where electricity is consumed, allowing power to be generated close to where it is needed and helping reduce pressure on transmission networks.
Perovskite solar cells are already being tested at locations where conventional panels have been difficult to install, including road noise barriers, railway facilities, public spaces and building rooftops.
West Nippon Expressway Company plans to begin installing film-type cells in mid-November on the roof of a parking area reserved for people with disabilities at the Katsuragawa Parking Area on the Meishin Expressway in Kyoto Prefecture.
A demonstration project is also underway on noise barriers along the Chita Peninsula Road in Aichi Prefecture. The electricity generated will be used for various applications, including systems designed to prevent vehicles from traveling in the wrong direction.
Other projects are exploring potential applications at railway stations and public facilities. At last year’s Osaka-Kansai Expo, Sekisui Chemical installed film-type cells on a bus stop roof, using the electricity generated to power nighttime lighting. 
JR West is also testing the technology in a plaza near Osaka Station to assess its potential for use at railway facilities.
Perovskite technology can also be integrated into buildings without compromising their appearance. In September, the Kamomeria sightseeing boat terminal in Kobe installed glass-type solar cells manufactured by Panasonic. The electricity generated is used to power lighting and air conditioning.
These projects demonstrate the technology’s potential to open up new locations for solar power generation. However, widespread adoption will depend on proving its durability under outdoor conditions and demonstrating that its benefits justify the installation costs.
(Read the article in Japanese.)
Author: Hiroto Kuwajima, The Sankei Shimbun
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