A Japanese firm is conducting the country's first test of using floating solar panels to generate power. The method is considered a promising way to generate renewable energy in a country where space on land is limited.

Sumitomo Mitsui Construction is carrying out the test, using subsidies from the Tokyo Metropolitan government. The company floated about 100 solar panels into Tokyo Bay in November.

The test will measure the durability of the panels, as well as the difference in power generation capacities between land and offshore facilities. The company plans to start generating electricity using the panels next spring.

"Offshore solar power can generate a large amount of electricity due to the cooling effect of the water surface," Sumitomo Mitsui Construction's Taketomi Yukio said. "It also allows us to use a large amount of space that we don't have on land. And we believe this system can generate more power than a large-scale solar power plant."

Major Japanese trading house Marubeni started generating electricity at an offshore solar plant in Taiwan last December. The company says the facility generates about 240 thousand kilowatts. It says it plans to carry out a similar project in Japan in the future.