Japan Solar Update: No.174 (Nov 10 ~ 14, 2025)
The agency for Natural Resources and Energy (ANRE) under METI presented a proposal to sort out the issues of the non-fossil value trading market toward making renewable energy a main power source, which is a draft that reviews the ceiling and floor prices of the FIT non-fossil certificate.
<Key points>
- The Ministry of Economy, Trade and Industry (METI) presented an overall picture of the non-fossil value trading market and, as short-term issues for consideration, organized discussions on matters such as raising the floor price for FIT certificates and reviewing the necessity of the ceiling price
- METI plans to discuss the framework and operation of the market and system at relevant advisory councils, including the Working Group for reviewing the scheme
- In light of cases where challenges have arisen regarding the development of renewable energy in harmony with local communities, METI established the Inter-ministerial liaison meeting for further promotion of ensuring harmony with local communities and strengthening of discipline in PV power generation, through which relevant ministries and agencies will work closely together to examine countermeasures
Overview of the non-fossil value trading market
Records of ceiling and floor prices are sorted out
Current prices
| Currency rate: 1 yen = $ 0.00675 (as of Oct. 1, 2025) | From May 2018 | From Nov. 2020 | From Nov. 2021 | From Aug. 2023 | |
| Renewable energy value trading market | Ceiling | 4.00 yen/kWh | 4.00 yen/kWh | ||
| Floor | 1.30 yen/kWh | 0.30 yen/kWh | 0.40 /kWh | ||
| Market where obligations of Act on the Promotion of Use of Non-fossil Energy Sources and Effective Use of Fossil Energy Materials by Energy Suppliers (the Act) are achieved | Ceiling | 4.00 yen/kWh | 1.30 yen/kWh | 1.30 /kWh | |
| Floor | None | 0.60 yen/kWh | 0.60 /kWh | ||
In November 2021, the market was divided into the Renewable Energy Value Trading Market (FIT certificates) and the Market where obligations of the Act are achieved (non-FIT certificates). Before the market split, FIT certificates could also be used to fulfill obligations under the Act, but after the split, only non-FIT certificates can be used for that purpose.
Issues concerning the non-fossil value trading market (draft)
Short-term issues for consideration
- Regarding the floor price of FIT certificates, promptly consider raising the price level while taking into account potential negative impacts on the PPA market. Also, promptly reassess the necessity and appropriateness of the ceiling price
- Regarding non-FIT certificates (designated renewable energy), promptly examine measures to minimize as much as possible any unsold certificates in the market
Medium and long-term issues for consideration
Trends in the promotion of renewable energy investment, the realization of environmental value, and changes in domestic and international business environments
It is planned to advance discussions in relevant councils (such as the Working Group for reviewing the scheme) on the future design of markets and schemes
Business discipline of the renewable energy power generation business
- There are still cases where issues with local communities have arisen regarding ensuring PV project development in harmony with local communities
- It is necessary to respond appropriately through close coordination among METI, the Ministry of the Environment (MoE), and other ministries and agencies responsible for related laws and regulations
Inter-ministerial liaison meeting for ensuring PV project development in harmony with local communities and strengthening discipline
was established
Industry associations have announced initiatives for the sound deployment of PV power generation in harmony with local communities, as well as the formulation of action guidelines
Appropriated disposal, etc. of renewable energy generation systems
Detailed proposal of the accumulation of funds to cover the disposal cost of wind power systems was presented
Figure 1 Issues related to the non-fossil value trading market and business disciplines, etc. in the renewable energy power generation business
Source:Materials from the 76th meeting of the Subcommittee for Large-volume Introduction of Renewable Energy and Next Generation Electricity Network (September 30, 2025), compiled by RTS Corporation