Osaka, Japan's Matsushita Electric Industrial (NYSE: MC), best known for the Panasonic brand name, said it would start selling a home-use fuel cell next year as part of an early commercialization of the next-generation energy supply system.

Matsushita said the hydrogen-based cogeneration system could reduce primary household energy consumption by 22 percent.

The company plans to install production equipment for the new system in its plant in Kusatsu and start manufacturing in June of this year.

Matsushita said further field testing is scheduled for fiscal 2009 ending March 31, 2009, with early sales to begin after that.

The company said further investments would be made in 2010 to start a full-scale commercialization of the system as a new environmental business.

The fuel cell system will be fueled by city gas, outputing 300 watts to 1,000 watts, with hot water storage capacity of 200 liters.

Matshushita said the polymer electrolyte fuel cell cogeneration system uses cell stack technology that employs membrane electrode assemblies that allows stable operation in a wide range at high efficiency.

The cell stack, which the company said consists of laminated layers of membrane electrode assemblies and a separator that supplies hydrogen and oxygen, is the structure that generates power and heat at the same time by electrochemical reaction between the hydrogen and oxygen.

Matsuhita reportedly expects to sell 3,000 to 5,000 units in the fiscal year ending March 2011, rising to 60,000 to 100,000 units in the fiscal year ending March 2016.