The Japanese government is proposing 20-year FITs lower than $0.010/kWh for rooftop PV and a ceiling price of $0.087/kWh for solar energy auctions. These incentive levels will likely be insufficient to stimulate demand given rising solar project costs.
Japan’s Ministry of Economy, Trade and Industry (METI) has published the feed-in tariffs (FITs) it proposes to apply to solar installations with a capacity ranging from 10 to 250 kW and the feed-in premiums (FIPs) it wants to assign to solar projects over 250 kW that are selected through the country’s auction scheme in 2022.
The ministry has set a fixed FIT of ¥11 ($0.096)/kWh for PV systems with power capacities of between 10 and 50 kW and a FIT of ¥10 ($0.087)/kWh for installations with capacities of 50 to 250 kW. Both these project categories will be granted fixed tariffs without having to be selected in the procurement scheme, although projects belonging to the second group will be given the chance to participate in auctions awarding feed-in premiums and will be included, for the procurement exercises, in the 50-1000 kW group.
For the latter, the METI has set a ceiling price of ¥10 ($0.087)/kWh and has decided to exclude all PV systems connected to the grid before January 17, 2022. Through the auction scheme, the minister hopes to allocate 665 MW of solar capacity across three different auctions.
Both the FITs and feed-in premiums will be valid for 20 years and will also apply to agrivoltaic and floating PV installations.
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