The paper summarises Japanese activities concerning photovoltaic systems including those for residential use, which is one of the major targets for a domestic alternative energy supply. Fiscal year 1999 marked the 25th anniversary of the Sunshine Project that was initiated in July 1974. The Sunshine Project was subsequently reorganised into the New Sunshine Program to include renewable energy, energy conservation and environmental technology. The major target of the Photovoltaic Technology Development Project in the Programme, from an early stage of R&D, has been focused on utility-connected, residential applications mounted on roofs. Recently, it can be considered that technologies for the target have been fundamentally established and a series of new activities have been introduced to promote the commercialisation and diffusion of PV systems. To review those activities, several condensed tables are presented, i.e., R&D history of residential applications, recent trends in regulation and code improvements, and new institutional activities to disseminate PV systems. The authors also present performance results collected from a large number of PV systems by using a very effective evaluation method called the 'SV method'. The paper finishes by introducing a good example of simple system monitoring with good verification that can establish a knowledge circle from a variety of PV fields, including to factories, engineers, owners and investors, and it seems to be quite cost-effective.