The Japanese ministry of economy, finance and trade will ask the finance ministry for $1.2 billion to promote solar, wind and biomass power in 2009, Reuters reports.

Spain and Germany are cutting subsidies for solar power, but Mitsubishi Electric and rivals such as Sharp Corp. and Kyocera Corp. are betting on growing solar power demand in the United States given high oil prices and fears about climate change.

Japan's solar market is also expected to grow, if modestly, with sources saying that the Ministry of Economy, Trade and Industry plans to seek ¥23.8 billion for subsidies for residential solar panels.

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