The photovoltaic (PV) power systems in Japan made great strides in the past decade. The PV industry in the 1990s greatly depended on the research projects and dissemination programs carried out by the Ministry of International Trade and Industry. However, the industrial structure for full-scale deployment of the PV system is currently being established by the manufacturers' continuous efforts to reduce the PV system cost and the government's consecutive supports to create the initial market. It is expected that the synergetic effect of the cost reduction and incentives for introduction will activate the PV industry and its market more and more toward achieving 5000 MW of the capacity in FY 2010. (C) 2002 Elsevier Science B.V. All rights reserved.