TOKYO -- General Electric will make a grand entry into Japan's solar power market with an installation that would have twice the output of the biggest domestic solar projects now in the works.

The U.S. conglomerate is seeking a foothold for selling equipment that manages power output. It may spark greater competition in the Japanese-dominated domestic market for such devices, leading to lower electric rates for consumers.

GE's 230,000kW solar farm will be built in the Okayama Prefecture city of Setouchi and start operating in 2018. It will be able to power some 80,000 households. GE is looking to take a majority stake in the plant's operating company, which has been set up by Tokyo-based Kuni Umi Asset Management.

Project costs are expected to total around 80 billion yen ($776 million), with GE contributing 10-20 billion yen.

The Japanese solar farms on the drawing board currently top out at 110,000kW. Mobile carrier SoftBank plans to start up a plant of that size next year, as do partners Toyota Tsusho and Tokyo Electric Power.

GE makes power plant equipment that helps minimize power loss, maximizing the output that reaches consumers. Such equipment accounts for 20% of plant construction costs.

In Japan, the Toshiba group and other domestic manufacturers hold a combined share of around 90% of this market, which Yano Research Institute estimates will grow by 70% to 160 billion yen from fiscal 2012 to 2015.

GE has eight solar power plants in the U.S. and Europe totaling 900,000kW.

Sunlight and other renewable resources make up a mere 1% of Japan's energy supply. The government is drafting a new energy strategy that may set a goal of 20-30%.

(Nikkei)