At the 88th meeting of the Procurement Price Calculation Committee, the forecast of PV system cost for FY 2024 was reported based on the results of a questionnaire survey for members of the Japan Photovoltaic Energy Association (JPEA).

– Motivation for developing ≥500kW projects is low, while for <500kW projects, 60% responded the same as or higher than the previous year, probably because the rooftop installations (12 Yen/kWh ($ 7.96 cents/kWh)) fall into this category. Urgent issue is to stimulate the operators’ motivation for the development.

– New cost increases and income declines include a decrease in income from electricity sales due to the increased output curtailment and a decrease in income from electricity sales and higher insurance premiums due to a sharp increase in cable thefts, etc.

<Key points>

• • Decreasing revenues and increasing costs have become apparent due to increased output curtailment and a sharp increase in cable thefts, etc.
  • JPEA requests consideration of purchase price, etc. based on actual cost trends, including new cost burdens
  • Several wind power generation operators also reported difficulties in developing new projects due to increased costs caused by soaring material prices and the weak yen and requested the introduction and application of allowances for price hikes