Japan needs a more nuanced perovskite strategy – Institute for Energy Economics and Financial Analysis (IEEFA)

Japan’s Perovskite Solar Cell Strategy and its Alignment with Sustainable Development Goals

In October 2025, the Japanese government identified perovskite solar panels as a central component of its national energy strategy. This initiative, detailed in the Ministry of Economy, Trade and Industry’s (METI) 2024 “Next Generation Solar Cell Strategy” and the 7th Strategic Energy Plan, aims to advance several Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action).

Advancing SDG 7: Affordable and Clean Energy

National Targets for Clean Energy Deployment

The government has established ambitious targets to integrate perovskite technology into the national energy mix, directly contributing to SDG 7. These targets include:

• Establishing a domestic production capacity of over 1 gigawatt (GW) by 2030.
• Achieving 20 GW of total installed perovskite capacity by 2040, projected to constitute up to 10% of Japan’s total solar generation.

Challenges in Achieving Energy Affordability

While the strategy supports the “clean energy” aspect of SDG 7, achieving the “affordable” component presents significant challenges. There is a notable discrepancy between government cost targets and industry projections for the levelized cost of electricity (LCOE).

• Government LCOE Target (2030): JPY 14 per kilowatt-hour (kWh).
• Industry LCOE Projection (2030): Approximately JPY 20/kWh, according to leading manufacturer Sekisui Chemical.
• Government LCOE Target (2040): Between JPY 10–14/kWh.
• Industry LCOE Projection (2040): Approximately JPY 15.3/kWh, which remains significantly higher than projected costs for conventional solar PV (JPY 6.6–10.4/kWh).

Fostering SDG 9: Industry, Innovation, and Infrastructure

Driving Technological Innovation

Japan’s focus on perovskites is a strategic effort to foster innovation and regain industrial leadership in the global solar market. The technology is in its early stages, as classified by the International Energy Agency (IEA), with key areas of development and current challenges including:

1. Types of Perovskite Cells:
   • Thin Film: Lightweight and flexible, deposited on substrates like plastic or foil. This type has received the most attention in Japan.
   • Glass Type: Encapsulated in glass for enhanced stability and durability.
   • Tandem Type: Combines perovskite with another PV technology, such as silicon, to boost overall efficiency.
2. Technological Hurdles:
   • Durability: Current cell lifetimes are estimated between 5 and 12 years, far short of the 25-year standard for conventional silicon panels. The 2040 durability target is 20 years.
   • Scalability: High conversion efficiencies (25% to 34%) have only been achieved on small cell areas, and commercial-scale production is not yet mature.

Building Resilient Infrastructure and a Self-Sufficient Supply Chain

The strategy strongly aligns with SDG 9 by aiming to build a resilient, self-sufficient domestic supply chain. This is supported by:

• Strategic Resources: Japan is the world’s second-largest producer of iodine, a critical component in perovskite cells, reducing reliance on international supply chains.
• Financial Commitment: The government has allocated significant funding to stimulate innovation, including JPY 54.8 billion (USD 364.5 million) between 2022-2024 and a planned JPY 1 trillion (USD 6.65 billion) over the next decade to support public-private investment.

Supporting SDG 11 and SDG 13: Sustainable Cities and Climate Action

Enhancing Urban Sustainability

Perovskite technology offers unique advantages for SDG 11 by enabling energy generation in dense urban environments. Its physical properties allow for novel applications that support sustainable cities.

• Versatile Installation: The thin, lightweight, and flexible nature of film-type perovskites allows for installation on surfaces unsuitable for heavy conventional panels, such as building walls, windows, and roofs with low load-bearing capacity.
• Grid Resilience: By generating electricity at the point of consumption, urban perovskite installations can reduce strain on transmission infrastructure and enhance the resilience of local power grids.

Strategic Recommendations for a More Nuanced Approach

While Japan’s perovskite strategy holds promise for advancing multiple SDGs, current cost and durability projections suggest that a more nuanced approach is required to maximize its contribution to a sustainable energy future.

Recommended Priorities for Policy and Industry

1. Prioritize Mature Technologies: The government should continue to prioritize and subsidize the deployment of established, cost-competitive clean energy technologies like conventional silicon-based solar PV, which possess the capacity to meet the majority of Japan’s energy demand.
2. Define Perovskites as a Niche Solution: Incentives for film-type perovskites should target applications where conventional solar is not viable. This positions the technology as a complementary solution rather than a direct competitor to more cost-effective options.
3. Emphasize Tandem-Type Development: Greater focus should be placed on tandem-type perovskite cells, which can be integrated with existing silicon technology to significantly enhance the efficiency and performance of conventional solar installations, thereby accelerating progress towards clean energy goals.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

   The article on Japan’s perovskite solar cell strategy addresses several Sustainable Development Goals (SDGs) by focusing on the transition to renewable energy, industrial policy, innovation, and climate action. The primary SDGs identified are:

   • SDG 7: Affordable and Clean Energy: This is the most central SDG, as the entire article revolves around the development and deployment of a new solar energy technology (perovskite solar cells) to ensure energy security and affordability.
   • SDG 9: Industry, Innovation, and Infrastructure: The article details Japan’s industrial strategy to regain competitiveness in the solar panel market, invest heavily in research and development, and build a self-sufficient supply chain for a new technology. This directly relates to fostering innovation and building resilient infrastructure.
   • SDG 13: Climate Action: The push for renewable energy technologies like perovskite solar cells is explicitly linked to “emissions reduction.” The article mentions a study that highlights how solar technology could “reduce carbon dioxide emissions by 87%,” directly addressing the need to combat climate change.
   • SDG 11: Sustainable Cities and Communities: The article notes a key advantage of perovskite technology is its versatility for urban environments. It states they “can be installed on building walls, windows, and many other urban surfaces” and can be “co-located with electricity demand centers,” which contributes to making cities more sustainable and resilient.

2. What specific targets under those SDGs can be identified based on the article’s content?

   Based on the article’s discussion of Japan’s energy plans and industrial strategy, several specific SDG targets can be identified:

   • Target 7.2: “By 2030, increase substantially the share of renewable energy in the global energy mix.” The article directly supports this target by detailing Japan’s goal to achieve “installations totaling 20GW” of perovskite solar cells by 2040, which would contribute to a total solar capacity of 200-250GW.
   • Target 7.a: “By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology.” The article highlights Japan’s domestic commitment to this principle, mentioning government spending of “JPY54.8 billion… in subsidies” between 2022-2024 and a plan to spend “another JPY1 trillion (USD6.65 billion) to help catalyze JPY31 trillion (USD206 billion) in public-private investments” for next-generation renewable energy.
   • Target 9.5: “Enhance scientific research, upgrade the technological capabilities of industrial sectors… encouraging innovation and substantially increasing… public and private research and development spending.” Japan’s “Next Generation Solar Cell Strategy” and the significant financial commitments to R&D for perovskites are a direct implementation of this target.
   • Target 9.4: “By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies…” The strategy to build a “self-sufficient supply chain” and commission “new production lines” for an advanced, clean energy technology aligns with this target.
   • Target 13.2: “Integrate climate change measures into national policies, strategies and planning.” The article explicitly mentions that Japan’s Ministry of Economy, Trade and Industry (METI) reiterated its perovskite targets in its “7th Strategic Energy Plan,” demonstrating the integration of climate-friendly technology into national strategy.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

   The article provides several quantitative and qualitative indicators that can be used to measure progress towards the identified targets:

   • Renewable energy capacity (Indicator for Target 7.2): The article specifies clear capacity targets that serve as direct indicators: “a domestic production capacity of over 1 gigawatt (GW) of perovskite solar cells” by 2030 and “installations totaling 20GW” by 2040.
   • Levelized Cost of Electricity (LCOE) (Indicator for SDG 7 – Affordability): The article uses LCOE as a key metric for affordability. METI’s price targets serve as indicators: “progressively decline from JPY20 per kilowatt-hour (kWh) to JPY14/kWh in 2030, and finally to between JPY10–14/kWh by 2040.”
   • Investment in R&D (Indicator for Target 9.5): The article provides specific financial figures that act as indicators of investment in innovation: “JPY54.8 billion (approximately USD364.5 million)” spent between 2022-2024 and a planned “JPY1 trillion (USD6.65 billion)” over the next decade.
   • Technology performance and durability (Implied Indicator for SDG 9): The article discusses key performance metrics that serve as indicators of technological maturity, such as “conversion efficiencies of between 25% and 34%” and cell lifetimes, with a target of reaching “20 years by 2040” compared to the current 5-12 years.
   • Reduction in Carbon Dioxide Emissions (Indicator for SDG 13): While not a national target, the article implies this as a key outcome, citing a study that found rooftop solar could “reduce carbon dioxide emissions by 87%.”

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article. In this table, list the Sustainable Development Goals (SDGs), their corresponding targets, and the specific indicators identified in the article.

   SDGs	Targets	Indicators
   SDG 7: Affordable and Clean Energy	7.2: Increase substantially the share of renewable energy. 7.a: Promote investment in clean energy technology.	Installed capacity of perovskite solar cells (Target: 20GW by 2040). Domestic production capacity (Target: >1GW by 2030). Levelized Cost of Electricity (LCOE) (Target: JPY10-14/kWh by 2040).
   SDG 9: Industry, Innovation, and Infrastructure	9.5: Enhance scientific research and R&D spending. 9.4: Upgrade infrastructure and adopt clean technologies.	Public and private investment in R&D (Plan: JPY1 trillion over 10 years). Establishment of a self-sufficient supply chain. Technology durability (Target: 20-year lifetime by 2040). Power conversion efficiency (Current: 25-34% in experiments).
   SDG 13: Climate Action	13.2: Integrate climate change measures into national policies.	Integration of renewable energy goals into national plans (e.g., “7th Strategic Energy Plan”). Potential reduction in CO2 emissions (Cited study: 87% reduction potential).
   SDG 11: Sustainable Cities and Communities	11.6: Reduce the adverse per capita environmental impact of cities.	Deployment of solar technology on urban surfaces (e.g., “building walls, windows”).

Source: ieefa.org