Risk of an impact on business performance from stagnation or a slowdown in solar cell adoption

「In the US solar PV-related market, which is our primary target market, the number of solar panel installations declined year on year due in part to the impact of policies. However, demand for solar PV remains high because it can be deployed quickly and at relatively low cost to meet rising electricity demand.」

「We are also increasing revenue outside the solar PV industry by focusing on FA equipment unrelated to the solar PV industry and on new businesses.」

「In addition to products and services affected by new solar panel installations, such as solar PV manufacturing equipment and pre-completion inspections of solar power plants, we are working to mitigate the impact of this risk by expanding our business across the solar PV value chain, from manufacturing through disposal. This includes products and services for panels already installed, such as inspection equipment and inspection services for solar power plants, and products and services for discarded panels, such as resale of reused panels, panel dismantling equipment and intermediate processing services.」

「In Japan's solar power industry, in which our environmental business operates, the feed-in premium (FIP) scheme was newly introduced, while FIT-certified solar power plants, including large-scale plants covered by our inspection services, are being installed successively. Companies and local governments are also increasingly adopting solar power for self-consumption through schemes such as power purchase agreements (PPAs).」

「In Japan's solar power industry, certified solar power plants under the domestic feed-in tariff (FIT) scheme are being installed successively. At the same time, companies and local governments are increasingly adopting solar power for self-consumption in light of the Japanese government's greenhouse gas emissions reduction targets, and solar power installations are expected to increase.」

「Prices of Chinese-made solar panels, which account for much of the market, have risen and distribution volumes have declined. Although the possibility that new power plant installations may slow has been noted, this is increasing demand for solar PV manufacturers outside China.」

「The U.S. solar-cell market, the main focus of our equipment-related business, is growing steadily as states and companies actively pursue renewable-energy adoption, supported by policies of the Biden administration, and new solar power generation capacity additions are forecast to exceed the previous year's level.」

「The U.S. solar-cell market, the main focus of our equipment-related business, is growing steadily as policy support and progress by states and companies in adopting renewable energy have driven new solar power generation capacity additions in 2020 to a record high.」

「In our equipment-related business, particularly the solar PV-related market, the market is growing steadily, supported by lower solar power generation costs and increased attention to renewable energy following the spread of COVID-19.」

「The solar PV market related to solar PV manufacturing equipment saw a temporary slowdown in new installations during the COVID-19 pandemic, but the market continues to expand.」

「In the solar power generation industry, in which our environmental business operates, domestic new installations have recovered since 2019 as power generation costs have fallen and interest in renewable energy has grown further, and installations are expected to continue at a high level.」

「Discussions are under way in Japan on revising the feed-in tariff scheme. However, many certified but not yet installed utility-scale solar power plants remain, and installations are proceeding successively across the country.」

「In Japan's solar power industry, in which our environmental business operates, discussions are under way on revising the feed-in tariff scheme. However, many certified but not yet installed utility-scale solar power plants remain, and construction is proceeding successively across the country.」

「In Japan, discussions are under way on revising the feed-in tariff scheme. However, because the purchase price at the time of certification applies to certified projects, construction of certified utility-scale solar power plants continues to progress.」

「In the solar PV industry in which our Group operates, concerns had emerged over a slowdown in the Chinese market. However, various policies, centered on the US and India, that set targets for the share of renewable energy, together with initiatives by RE100 member companies and others, primarily in Europe and the US and driven by ESG investment, are providing support. Global solar PV installations are therefore expected to continue growing year on year.」

「Although there were concerns about a slowdown in the Chinese market, various policies promoting renewable energy adoption and initiatives by RE100 member companies backed by ESG investment, primarily in the United States and India, are providing support, and installations are expected to remain firm going forward.」

「In the solar cell industry to which our group belongs, solar cell installations are expanding globally, and solar cell adoption is expected to remain firm over the medium to long term. We believe this will provide a tailwind for our group's performance. However, if solar cell adoption stagnates or slows in the future for any reason, this could affect our group's performance.」

「In Japan, the solar cell market is on a shrinking trend, but construction of utility-scale solar power plants has progressed in various regions.」

「The economics of solar power are expected to improve further, and global solar cell installations are expected to continue increasing over the long term. In Japan, solar cell installations are expected to gradually decline as purchase prices are reduced, but construction of solar power plants certified by the Ministry of Economy, Trade and Industry is expected to continue at a certain scale.」

「However, if solar cell adoption stagnates or slows in the future for any reason, this could affect the performance of our group.」