Japan's conventional solar stocks tumble after Takaichi victory

Sekisui Chemical Co

06/10/2025 07:25

TOKYO, Oct 6 (Reuters) - Shares in Japanese renewable energy company Renova 9519.T  plunged more than 11% on Monday, making it the biggest loser on the Tokyo Stock Exchange's prime market, after a party vote positioned Sanae Takaichi to become the next prime minister.

The sharp drop came amid speculation that the win by the former economic security internal affairs minister in the Liberal Democratic Party (LDP) leadership election could hurt prospects for large conventional solar-related businesses, as she has been sceptical of big solar projects.

Takaichi has called for limits on large solar panel projects, arguing many panels are made overseas, notably in China, and mega-solar installations could damage Japan's scenery and natural environment.

Renova shares were down 11.34% at 844 yen as of 0545 GMT.     Shares in West Holdings 1407.T, a standard market-listed solar panel company, also fell more than 11%.

At the same time, Takaichi has expressed support for  promoting perovskite solar cells, a next-generation technology developed in Japan.

Perovskite cells are seen as addressing the weaknesses of conventional silicon-based panels by being lower-cost and more environmentally friendly, said a strategist at a Japanese securities firm.

Takaichi's victory is creating headwinds for conventional solar-related companies but optimism for companies linked to perovskite technology, the strategist added.

Shares in Sekisui Chemical 4204.T, which is involved in perovskite development, and K&O Energy Group 1663.T, a materials supplier, both rose more than 7%.

Meanwhile, shares in Japan Steel Works 5631.T jumped 14.63%, as investors bet on Takaichi's strong support for nuclear power.

 (Reporting by Yuka Obayashi and Mayu Sakoda; Editing by Jamie Freed)

 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))