Japan has decided to from 5 consortia of three to nine companies to bid for large solar projects in Asia and Africa.The Japanese government will support these consortia with subsidies and diplomacy to take on the Chinese solar companies.Note Chinese companies have soundly beaten the Japanese in solar company rankings despite the early mover advantage.Japanese zaibatsus are falling behind the Chinese in the global solar marketshare as low costs,cheap capital and huge subsidies have bankrupted European and American solar companies.Solar Energy in Japan has a long future dating back to 1994 when the government introduced capital subsidies to boost solar energy installations on rooftops.Till 2004,Japan was the largest solar market in the world after which it was overtaken by Germany.After 2004,the growth in the solar industry tapered off as the government reduced the subsidies for solar panels to almost zero.The huge domestic market gave rise to Japanese companies like Sharp,Mitsubishi,Kyocera,Panasonic-Sanyo become top solar panel producers in the world.However the low cost Chinese solar module producers have pushed back most of the Japanese companies