InsideJapan News Network

Japan looks set to bolster its positions as a world-leader in the solar panel industry by reintroducing subsidies to manufacturers, it has been reported.

According to officials from the country's ministry of economy, trade and industry, a clean energy panel is to recommend the idea.

Domestic solar demand has decreased rapidly since subsidies government were withdrawn

Reuters quotes an unnamed source saying: "Japan has the technological advantage. But the measures would have to be drastic if we are to keep our lead."

Despite the set back in solar panel manufacturing, Japan remains the world's largest supplier of the cells.

Analysts believe the country will now regain its technological edge in the solar panel sector.

Nomura analyst Tetsuya Wadaki commented: "The tide won't change quickly. But Japan has owned up to its mistake. Now there is ample hope."

Last month, prime minister Yasuo Fukuda announced a long-term aim of reducing greenhouse gases emissions by up 80 per cent by 2050.