Japan’s Shift to Solar Power Hinges on Banks Lending More Freely

Japan is beginning a shift to solar energy that lacks one ingredient: bank financing.

For lenders like Sumitomo Mitsui Financial Group Inc. (8316), a commitment to offer loans to solar ventures depends on a law to be passed today that will subsidize renewable energy, part of Prime Minister Naoto Kan’s initiative to cut Japan’s reliance on atomic energy after the Fukushima nuclear crisis.

Trading houses Mitsui & Co. and Mitsubishi Corp., insurers Munich Re and Tokio Marine Holdings Inc. (8766), and billionaire Masayoshi Son are among those ready to invest in solar power. For their businesses to become viable, they need utilities to buy electricity generated by the sun, wind and geothermal heat at above-market prices, known as feed-in tariffs.

Read the rest of the story: Japan’s Shift to Solar Power Hinges on Banks Ending Loan Drought.

One Reply to “Japan’s Shift to Solar Power Hinges on Banks Lending More Freely”

  1. Solar is definitely an future energy source.

    In Madeira many domestic houses have solar panels on their roof tops – especially in the sunny south of the island.  On the extreme south east tip of our island is a large bank of corporate solar panels.  Just a small array can generate 3 kilowatt/hours of electricity.

    As tragic as the nuclear accident was, I hope it provides a major impetus for Japan to turn towards renewable energy sources. 

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