Japan Solar Update: No.136 (Feb 17 ~ 21, 2025)
The Agency for Natural Resources and Energy (ANRE) under the Ministry of Economy, Trade and Industry (METI) held the meeting of the Procurement Price Calculation Committee and discussed a scheme to support initial investment and the establishment of a new power generation facility category for perovskite solar cells (PSCs) based on the FIT and FIP programs. In the scheme to support initial investment, the introduction of commercial and industrial (C&I) rooftop PV systems and residential PV systems will be supported through the raise of the purchase prices and the shortening of the purchase period. ANRE indicated its policy to start offering support according to the new category at the time when the power generation cost of PSCs falls below the standard electricity bills.
<Key points>
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- A scheme for supporting initial investment was presented, with the support price for C&I rooftop PV systems set at approx. 19 yen/kWh (12.1 cents/kWh) for an investment support period of five years, and a stepped pricing system is designed to ensure business continuity
- The support price for residential PV systems was set at approximately 24 yen/kWh (15.3 cents/kWh) for a shorter initial investment support period of four years to maximize the effect of accelerating the investment recovery period
- Regarding the creation of a new power generation facility category, it was decided to continue discussions on initiating support when the generation cost of perovskite solar cells (PSCs) falls below the electricity tariff level
Initial investment support scheme
Promoting the introduction of rooftop PV systems that are easier to ensure harmony with local communities, are self-consumption-based, and have low grid load
C&I rooftop PV systems
Initial investment support price: ca. 19 yen/kWh (12.1 cents/kWh) for 5 years
6th ~20th year support price: 8.3 yen/kWh
Residential PV systems
Initial investment support price: ca. 24 yen/kWh (15.3 cents/kWh) for4 years
5th~10th year support price: 8.3 yen/kWh
*FY 2025 support price: 15 yen/kWh for 10 years
Assumption
Based on the assumption of promoting self-consumption and suppressing the burden on citizens, the electricity tariff level will be set to the assumed value* of self-consumption benefits for the FY 2025 pricing, and measures will be taken to ensure that the price during the initial investment support period does not exceed this level, etc.
* Electricity tariff levels: C&I 19.56 yen/kWh (12.5 cents/kWh), residential 27.31 yen/kW (17.4 cents/kWh)
※ Applied from October 2025; the FY2025 price set for April to September 2025 will be maintained.
- For PV systems between 10 kW and 50 kW, the principle of self-consumption-based regional utilization requirements will apply.
- Eligibility for the FIP system is limited to systems of 250 kW or more in FY2025 and 50 kW or more in FY2026, etc.
Study on the creation of a new category of power generation facilities
Perovskite solar cells (PSCs)
Discussions will be continued aiming to start the support through the new category at the point when the power generation cost falls below the electricity tariff level
Many of the assumed values for setting FY 2026 prices for C&I (not subject to tender) and residential PV systems will remain unchanged
Figure 1 Specific proposals, etc., of the initial investment support scheme
Source: Materials of the meetings of the Procurement Price Calculation Committee, compiled by RTS Corporation