Honda has announced it will close its thin-film manufacturing subsidiary Honda Soltec spring 2014.
In a statement Honda said the falling cost of silicon was one of many factors that meant it was unable to remain competitive.
The unit had developed its own copper, indium, gallium and selenium (CIGS) module and manufactured from a 30MW production hub.
It will continue taking orders until February 2014 and will provide after sales support via a separate Honda affiliate once Soltec has been dissolved.
Honda lists the firm's capital investment at ¥4 billion (US$40.5 million). Soltec was established in 2006.