94% of renewable energy projects approved under Japan’s feed-in-tariff programs are for solar energy generation

Japan’s feed in tariff for renewable energy

Almost all projects are for solar energy

Feed-in-tariffs for renewable energy where introduced in two stages in Japan. Large scale introduction of feed-in-tariffs (FIT) started with the Law entitled “Special measures concerning renewable energy electric power procurement by operators of electrical utilities law” which came into force on July 1, 2012. However, subsidies and feed-in-tariffs were already in place earlier for residential solar (mostly on roof-tops of private homes). Projects approved under the FIT program of July 1, 2012 amount to an increase of 41% in nominal renewable electrical generation capacity. Feed-in-tariffs however are not the whole story, because there are also programs for financial support, special finance arrangements, and tax benefits, and other support programs.

Read more detail below, or purchase our report on Japan’s renewable energy sector for more detail data and analysis.

Renewable energy projects approved under Japan's feed-in-tariff program increased renewable energy generation capacity by 41.4% sofar
Renewable energy projects approved under Japan’s feed-in-tariff program increased renewable energy generation capacity by 41.4% sofar

Under the law feed-in-tariffs are periodically reviewed and adjusted. In fact, feed-in-tariffs for solar energy have already been reduced by about 10% this year and are likely to be decreased further next year. For some types of feed-in-tariffs however, increases are under discussions – thus the FIT-tariffs for off-shore wind maybe increased in the future.

Since feed-in-tariffs for solar are set for a period of 20 years, and are decreased periodically, there is great incentive to start solar installations as early as possible, in fact some Mega-Solar plants were switched on on July 1, 2012 to use every possible day. Currently there is a rush of solar operators starting up and expanding in Japan – exactly the effect the Government had intended by setting high feed-in-tariffs.

Project approvals under Japan's feed-in-tariff program for renewable energy are 93.8% for solar plants
Project approvals under Japan’s feed-in-tariff program for renewable energy are 93.8% for solar plants

The renewable energy mix approved under the FIT program is very different to Japan’s traditional renewable energy mix, which was predominantly large scale water power plants

Prior to the introduction of feed-in-tariffs, renewable energy in Japan was predominantly large scale (greater than 1 MegaWatt) water power
Prior to the introduction of feed-in-tariffs, renewable energy in Japan was predominantly large scale (greater than 1 MegaWatt) water power.

Read detailed statistical data for installed renewable capacity and electricity generation and analysis in our report on Japan’s renewable energy sector – click here.

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