Japan is running out of places to build power plants.

So it’s putting solar panels on reservoirs, farmland, factory rooftops, highways, even the ocean.
A solar farm is basically a machine that makes money. Except you have to spend millions, sometimes tens of millions, to buy it first.
The money goes in first. Then it generates electricity and sells it every day. And over many years, that revenue slowly pays back what you put in.
So the question is: Who’s willing to put up that much money first?
That’s where Japan’s FIT comes in. Put simply, it makes the future revenue from selling electricity easier to predict. When the revenue is easier to predict, banks are more willing to lend. When banks are willing to lend, developers are willing to build.
Then Japan starts buying the equipment. Chinese factories start taking the orders. Banks provide the financing. Companies build the projects. And eventually, businesses and households pay for the electricity.
So what’s really interesting isn’t just how many solar panels Japan can install.
It’s: Where does all that money end up?
Because when a country starts rebuilding its energy system, the real opportunity may not be on the solar panel sitting on the roof.
It may be everything behind it.#Finance #Energy #Solar #RenewableEnergy #Infrastructure #Investing #China #Japan