Japan Solar Update: No.132 (Jan 20 ~ 24, 2025)
The Agency for Natural Resources and Energy (ANRE) under the Ministry of Economy, Trade and Industry (METI) and the Ministry of the Environment (MoE) recently held joint meetings of the Working Group for PV Facility Recycling (METI) and the Subcommittee for PV Facility Recycling Scheme (MoE) and discussed the cost burden of recycling, etc.
In the discussion, based on the principles of “waste generators’ responsibility” on the business operators and “extended producer responsibility” on the producers, the WG presented a proposal of categorizing the costs on recycling into the cost for demolition, etc. and the cost for recycling, a proposal of limiting the target of mandatory recycling to PV modules, and so on.
<Key points>
- In principle, all PV systems are subject to deposit for dismantling and other expenses, and this will also apply to the PV systems that have already been installed. Residential PV systems are an exception to the deposit obligation
- As a general rule, payment of demolition costs is required to be deposited at the start of the project
- Directions have also been sorted out on the method of calculating demolition cost, measures against abandoned PV modules, and the overall picture of information management
- Since general support has been gained, the Working Group (WG) plans to proceed with deliberations toward the compilation of the report at the next meeting
How to bear the cost of dismantling, etc.
- The owner of the facility bears the cost of demolition (agreed at the previous meeting)
- In order to ensure the cost of demolition, etc., it is necessary to have a mechanism to make a deposit with a third-party organization
- In principle, all PV systems are subject to deposit for the cost of demolition and other expenses, and this applies to those that have already been installed
- As a general rule, payment of demolition costs must be deposited before the start of the project
- Residential PV systems are not subject to the deposit obligation because they are unlikely to be left unattended
- Facility owners who are expected to surely secure costs are exceptionally allowed for internal reserve of funds
- Facility owners that secure the cost of demolition and other expenses based on the Act on Special Measures for Renewable Energy will not be required to make a deposit under the new system
How to calculate the cost of demolition, etc.
- To calculate by multiplying the quantity by a certain unit price
- For the unit of quantity, the output capacity of the power generation facility is used as the unit of calculation
- The level of disposal costs envisaged under the FIT/FIP programs shall be referred to
- If there is a shortage of expenses in an individual project, the facility owner shall bear the shortfall
Measures against abandoned PV modules
In addition to the existing measures, the following mechanisms will be considered
- To establish a mechanism to surely ensure that the cost of demolition, etc. and recycling costs are secured at an early stage, including non-FIT/non-FIP systems
- To establish a mechanism to share information on PV systems, as well as information on disposal and recycling, including non-FIT/non-FIP systems
- To establish a mechanism that will allow the use of the cost of demolition, etc. and recycling costs secured at that time, in case PV modules are abandoned and a third party other than the facility owner dismantles or removes the abandoned PV modules
Overall image of information management
- It is necessary to have a mechanism for the relevant players to register the information necessary for the implementation of appropriate disposal and recycling with an organization that aggregates information. The information on costs and goods will be managed in an integrated manner
- Integrate information on existing infrastructure as much as possible, and examine it including the information provided by power producers, etc.
Chairperson Owada
At the next meeting, it is planned to proceed with deliberations toward the conclusion of this joint meeting
Source: Materials of the 6th Joint Meeting of the Working Group for PV Facility Recycling and the Subcommittee for PV Facility Recycling Scheme (November 21, 2024), compiled by RTS Corporation