Panasonic Solar Investment
Panasonic Solar Sales Set to Soar in Japan
Next month, a feed-in-tariff (FIT) will be introduced in Japan. The tariff will grant solar panel makers with 42 yen (52 cents) per kilowatt-hour. The FIT also provides companies such as Panasonic Corp. (6752), Sharp Corp. (6753) and Kyocera Corp (6971) with a large incentive to increase their focus on the solar space.
Panasonic anticipates that sales in Japan will jump 13%, to 80% of total global revenue. This expectation is not only due to the new FIT, but also stems from the increased demand for new energy sources resulting from the nuclear meltdowns that took place in Japan last year.
In order to expand their global market share and further increase sales, Panasonic is also opening a new solar technology facility in Malaysia. The Malaysia plant will not only allow the company to boost production, but will also enable it to lower its costs. Panasonic anticipates that this will help keep margins near ten percent.
Panasonic is also hopeful that its battery unit, which in addition to generating consumer batteries also produces those used for solar technology, will see a 7% increase in sales. Panasonic is anticipating profits in this industry to be approximately 3 billion yen.