Japanese database released the results of the Investigation on Bankruptcy Trend of Solar Related Companies on April 14 this year, which unveils the total debt of such corporations in 2020 has reached 48.65 billion yen (105.1% higher than the previous quarter).

In the first half of 2020, 41 related companies went bankrupt, together with 38 in the second half, led to a decrease of 2.5% compared with last year.

Since January, there have been two bankrupt companies with debts exceeding 10 billion yen, such as JC Service, which designs, develops and installs renewable energy power generation systems.

Since 2014, the bankruptcy rate of solar related companies has continued to grow for five consecutive years, reaching a peak of 96 cases in 2018, and nearly 80 in 2020.

Since the FIT system was reviewed again in 2020, it is difficult to expand the small solar equipment business, and the market has begun to shrink due to lower purchase prices and lower costs.

If the FIT was replaced by FIP system in the spring of 2022, it will further accelerate the trend of enterprise elimination.