Abstract Considerable amount of energy is being consumed in the buildings worldwide. Space and water heating have big share in building energy consumption, account for 53.2% and 28.1% in Japanese residential and commercial buildings at 2015, respectively. Solar heating is a reliable and mature technology that experienced its remarkable success in Japan during late-1970s and early-1980s. However, during last 30 years, the number of installations in Japan is decreased, even after 2011 Fukushima nuclear disaster and energy challenge in Japan. This study is presenting a historical review on the solar heating market status, policy, and research trends in Japan with focus on the Japan’s glorious solar heating market at 1980’s. The reasons and barriers for further deployment of solar thermal technology are investigated and suggestions are presented.