Japan Solar Update: No.42 (Apr 24 ~ 28, 2023)
The Ministry of Economy, Trade and Industry (METI) announced the surcharge unit price of renewable energy for FY 2023 and the purchase price for FY 2024 under the FIT and FIP programs.
The surcharge unit price of renewable energy for FY 2023 is set at 1.40 Yen/kWh (1.05 cents/kWh), or a decrease of 2.05 Yen (1.54 cents/kWh) compared to FY 2022, and the new price will start to be applied to the electricity bill from May 2023. The financial burden of the standard households consuming 400 kWh/month will decrease by 820 Yen/month ($ 6.17 /month). The purchase price of commercial PV systems for FY 2024 is set at 10 Yen/kWh (7.52 cents/kWh) for 10 kW to < 50 kW systems and 9.2 Yen Yen/kWh (6.92 cents/kWh) for ≥ 50 kW systems which are not subject to the tender. The purchase price of residential PV systems for FY 2024 is set at 16 Yen /kWh (12 cents/kWh), which remains the same as FY 2023.
<Key points>
- Purchase price for ≥10 kW rooftop PV systems will be raised to 12 Yen/kWh (9.02 cents/kWh) from the second half of FY 2023 starting in October 2023
- The unit rate of surcharge in FY 2023 decreased by 2.05 Yen/kWh (1.54 cents/kWh) from the previous year to 1.40 Yen/kWh (1.05 cents/kW), which was lower than the level of FY 2015. Although purchase costs have continued to increase, soaring electricity market prices have significantly increased avoidable costs linked to market prices
Purchase prices for PV systems in FY 2023 onward (Unit: Yen/kWh)
- For 10 to < 50 kW systems, requirements for approving power sources as locally-used power sources for self-consumption have been applied from FY 2020
- The subjects of tenders in FY 2023: 250 – < 500 kW systems for FIT tender and ≥ 500 kW systems for FIP tender
FY 2023 surcharge unit price
Down by 2.05 Yen/kWh (1.54 cents/kWh) from the previous year to 1.40 Yen/kWh (1.05 cents/kW), which was lower than the level of FY 2015
* Estimated amounts of FY 2022 and FY 2023 are on the same level, without any significant change.
Figure 1 Purchase prices for FY 2023 onward under the FIT and FIP programs and surcharge unit price in FY 2023
Source: Press release by METI (March 24, 2023), compiled by RTS Corporation