Japan Renewable Energy Market (2025-2031) | Outlook ,Value, Industry, Growth, Revenue, Share, Companies, Size, Trends, Forecast, Analysis

Japan Renewable Energy Market Growth Rate

According to 6Wresearch internal database and industry insights, the Japan Renewable Energy Market is projected to grow at a compound annual growth rate (CAGR) of 5.85% during the forecast period (2025–2031).

Five-Years Growth Trajectory of the Japan Renewable Energy Market with Core Drivers

Below mentioned are the evaluation of year-wise growth rate along with key drivers:

Topics Covered in the Japan Renewable Energy Market Report

Japan Renewable Energy Market report thoroughly covers the market by technology type and end-user type. The market report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high growth areas, and market drivers, which would help stakeholders devise and align their market strategies according to the current and future market dynamics.

Japan Renewable Energy Market Highlights

Japan Renewable Energy Market Synopsis

The Japan Renewable Energy Market continues to see consistent growth from supportive government policies for decarbonization, backed by the commitment to reach carbon neutrality by 2050. Rapid technological advances in solar PV, offshore wind, and energy storage are changing Japan energy mix. The growth in corporate power purchase agreements (PPAs) along with local microgrid deployment is improving accessibility to renewable energy. Additionally, the Strategic Energy Plan and the Green Growth Strategy provide policy overlays to speed investment and upgrades to regional infrastructure.

Evaluation of Growth Drivers in the Japan Renewable Energy Market

Below mentioned some growth drivers and their impact on market dynamics:

Japan Renewable Energy Market is expected to grow significantly, with a CAGR of 5.85% during the forecast period of 2025–2031. The market is expected to grow consistently, driven by Japan ambitious carbon neutrality goals, increasing corporate green procurement, and continuous renewable innovation. Japan Renewable Energy Market Growth is further propelled by the rapid expansion of distributed solar, offshore wind farms, and advanced energy storage systems. Increasing electricity demand and modernization of grid infrastructure are enhancing renewable integration, supporting energy security, and positioning Japan as a leading clean energy hub in the Asia-Pacific region during the forecast period.

Evaluation of Restraints in the Japan Renewable Energy Market

Below mentioned are some major restraints and their influence on market dynamics:

Japan Renewable Energy Market Challenges

The Japan Renewable Energy Industry faces challenges despite supportive policies. For shared renewable energy deployment, limited land access for development, high costs for development, and complex consent processes regularly slow development. The industry also relies heavily on imported technology products, along with the inconsistency of grid capacity regionally. There are logistical challenges to expanding offshore wind in deep-sea locations. Similarly, the lack of usable energy storage will limit capacity to deploy renewable energy broadly. Using infrastructure investment, domestic manufacturing, and reducing regulatory burden to alleviate these challenges is required if Japan intends to successfully achieve its renewable energy and carbon neutrality goals.

Japan Renewable Energy Market Trends

Some major trends contributing to the development of the Japan Renewable Energy Market growth are:

• Offshore Wind Expansion: Government-backed tenders for offshore wind farms are transforming Japan coastal energy generation capacity.
• Distributed Solar Growth: Rising adoption of rooftop and community solar systems among households and businesses.
• Projects in Offshore Wind: Investments in deepwater turbines and floating wind technology in the north and south of Japan. 
• Rooftop Solar: Growing small-scale solar PV in urban homes and offices. 
• Battery / Smart Grid: Supporting power reliability and electric vehicle infrastructure demand. 
• Green Hydrogen & Ammonia: Producing hydrogen with renewable energy footprint for industrial uses and transport. 
• Corporate PPAs / Renewable Procurement: Collaborating with industry to achieve their sustainability targets for the RE100 programme.

Investment Opportunities in the Japan Renewable Energy Market

Here are some investment opportunities in the Japan Renewable Energy Industry:

• Projects in Offshore Wind: Investments in deepwater turbines and floating wind technology in the north and south of Japan. 
• Rooftop Solar: Growing small-scale solar PV in urban homes and offices. 
• Battery / Smart Grid: Supporting power reliability and electric vehicle infrastructure demand. 
• Green Hydrogen & Ammonia: Producing hydrogen with renewable energy footprint for industrial uses and transport. 
• Corporate PPAs / Renewable Procurement: Collaborating with industry to achieve their sustainability targets for the RE100 programme.

Top 5 Leading Players in the Japan Renewable Energy Market

Here are some top companies contributing to Japan Renewable Energy Market Share:

1. Eurus Energy Holdings Corporation

Leading renewable energy company engaged in onshore and offshore wind projects and large-scale solar farms across Japan, focusing on technological innovation and grid expansion.

2. JERA Co., Inc.

Japan largest power generation company investing heavily in renewables, energy storage, and hydrogen solutions to accelerate carbon neutrality.

3. Renova Inc.

Developer specializing in biomass, solar, and offshore wind energy, known for strong sustainability commitments and corporate green power PPAs.

4. SoftBank Energy Corporation

Subsidiary of SoftBank Group focused on solar and wind projects, investing in AI-based energy optimization and smart grid solutions.

5. TEPCO Renewable Power, Inc.

Renewable division of Tokyo Electric Power Company developing hydro, solar, and offshore wind assets for Japan transition to clean power.

Government Regulations Introduced in the Japan Renewable Energy Market

According to Japanese Government data, Ministry of Economy, Trade and Industry (METI), key policies like the Strategic Energy Plan, Feed-in Premium (FiP) Scheme, and Green Growth Strategy through Achieving Carbon Neutrality by 2050 guide the renewable transition. Through offshore wind auctions under the 2022 Renewable Energy Act, Japan encourages long-term renewable investments. Alongside the Hydrogen Basic Strategy and Grid Enhancement Programs, these initiatives boost energy resilience, innovation, and nationwide infrastructure development.

Future Insights of the Japan Renewable Energy Market

The Japan Renewable Energy Market is set for rapid growth during the forecast period, with increasing solar/ off/onshore wind capacity, increased battery storage installations, and increased demand from corporate renewable. Consistent government policies, increased technology innovation, and the facilitation of private sector participation will improve market competitiveness. With an ongoing focus on grid modernization, advancing the hydrogen economy, and creating carbon-neutral plans, Japan is expected to remain a leader in renewable energy in the next decade across the Asia-Pacific region.

Market Segmentation Analysis

The report offers a comprehensive study of the subsequent market segments and their leading categories.

Solar to Dominate the Market - By Technology

According to Ritika Kalra, Senior Research Analyst, 6Wresearch, the solar segment dominates the Japan Renewable Energy Market due to its scalability, high government support, and decreasing installation costs. Rooftop and utility-scale PV projects remain key contributors to the renewable mix, supported by the Feed-in Premium scheme and technological advancements that improve efficiency and energy yield across Japan urban and rural regions.

Utilities to Dominate the Market – By End-User

The utilities segment is leading due to strong participation from national power companies like TEPCO and JERA in large-scale renewable deployment. These utilities are investing heavily in offshore wind, solar, and hybrid storage projects to enhance grid stability and meet national decarbonization goals, ensuring consistent renewable energy supply to Japan growing electricity demand.

Key Attractiveness of the Report

• 10 Years Market Numbers.
• Historical Data Starting from 2021 to 2024.
• Base Year: 2024
• Forecast Data until 2031
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

• Japan Renewable Energy Market Outlook
• Market Size of Japan Renewable Energy Market, 2024
• Forecast of Japan Renewable Energy Market, 2031
• Historical Data and Forecast of Japan Renewable Energy Revenues & Volume for the Period 2021 - 2031F
• Japan Renewable Energy Market Trend Evolution
• Japan Renewable Energy Market Drivers and Challenges
• Japan Renewable Energy Price Trends
• Japan Renewable Energy Porter's Five Forces
• Japan Renewable Energy Industry Life Cycle
• Historical Data and Forecast of Japan Renewable Energy Market Revenues & Volume By Technology for the Period 2021 - 2031F
• Historical Data and Forecast of Japan Renewable Energy Market Revenues & Volume By Wind for the Period 2021 - 2031F
• Historical Data and Forecast of Japan Renewable Energy Market Revenues & Volume By Solar for the Period 2021 - 2031F
• Historical Data and Forecast of Japan Renewable Energy Market Revenues & Volume By End-User for the Period 2021 - 2031F
• Historical Data and Forecast of Japan Renewable Energy Market Revenues & Volume By Utilities for the Period 2021 - 2031F
• Historical Data and Forecast of Japan Renewable Energy Market Revenues & Volume By Captive Industrial for the Period 2021 - 2031F
• Historical Data and Forecast of Japan Renewable Energy Market Revenues & Volume By Commercial for the Period 2021 - 2031F
• Historical Data and Forecast of Japan Renewable Energy Market Revenues & Volume By Residential for the Period 2021 - 2031F
• Japan Renewable Energy Import Export Trade Statistics
• Market Opportunity Assessment By Technology
• Market Opportunity Assessment By End-User
• Japan Renewable Energy Top Companies Market Share
• Japan Renewable Energy Competitive Benchmarking By Technical and Operational Parameters
• Japan Renewable Energy Company Profiles
• Japan Renewable Energy Key Strategic Recommendations

Market Covered

The report subsequently covers the market by following segments and subsegments:

By Technology

• Wind
• Solar

By End-User

• Utilities
• Captive Industrial
• Commercial
• Residential