The 1200V class silicon carbide Schottky barrier diodes were designed and fabricated. The drift layer resistance was reduced in order to realize low forward voltage drops. Since the low drift layer resistance led to the low breakdown voltage, the avalanche withstanding capability should be enhanced not to cause the destructive breakdown. By means of the optimized device design, we succeeded to realize the low forward voltage drop while maintaining the high avalanche withstanding capability. The forward voltage drops at 200A/cm° were 1.35V at 25°C and 1.63V at 175°C, respectively. The avalanche withstanding capability was more than 3500mJ/cm₂ at 25°C. By substituting SiC-SBDs for Sipin diodes, the estimated total power loss of the module comprised by Si-IGBTs and the diodes was reduced by 35%. We could also confirm that no failures happened after long term reliability tests.