May 1, 2025 | Tokyo — Panasonic Corporation has officially announced the shutdown of its solar and energy storage division, marking the end of a four-decade-long chapter in the company’s energy journey. The move is part of a broader realignment toward areas deemed more strategically vital for long-term competitiveness.
In an official statement, Panasonic affirmed its continued belief in the potential of solar and storage technologies. However, the company emphasized the need to “concentrate resources on high-priority strategic segments” to ensure sustainable growth and enhance operational efficiency across the group.
“We remain confident in the future of solar and energy storage,” the company said, “but to stay competitive and resilient, we must focus on areas where we can lead and differentiate.”
The decision comes as global competition intensifies, particularly from low-cost Asian solar manufacturers and rapidly evolving energy storage technologies. Panasonic had already withdrawn from in-house solar panel manufacturing in 2022, opting instead for OEM supply models. However, the latest announcement signals a full exit from both solar and residential energy storage operations.
End of an Era
Panasonic entered the solar business in the 1980s and was once considered a leading innovator in HIT (heterojunction) cell technology. Its battery systems—particularly in the residential market—also gained a strong foothold in Japan and parts of North America.
The closure affects the remaining segments of the division responsible for R&D, system integration, and after-sales services.
Strategic Realignment
The company is now shifting focus toward high-growth, high-value sectors such as:
-
Advanced EV batteries (including its partnership with Tesla)
-
Energy solutions for AI data centers
-
Automotive and industrial automation systems
-
B2B energy infrastructure technologies
Panasonic aims to improve profitability by reallocating capital and talent toward these areas. According to its February 2025 transformation plan, the group targets more than ¥300 billion ($2 billion) in structural profit improvements by fiscal 2028.
Industry Context
The announcement reflects a broader trend among legacy tech conglomerates realigning portfolios in response to global energy market shifts, price pressures, and decarbonization demands. Industry analysts say Panasonic’s exit from solar and storage underscores the need for agility and focus in an increasingly consolidated and competitive global clean energy landscape.