Japan Solar Update: No.189 (Feb 23 ~ 27, 2026)
The Ministry of Economy, Trade and Industry (METI) and the Agency for Natural Resources and Energy (ANRE) finalized the policy to increase the FIT balancing cost for fiscal year 2026 by a flat 1.00 yen per kWh. The rationale for the increase was that changes to the priority power supply rules will increase output control of FIT power sources, reducing the burden on the public by approximately 1.12 yen.
<Key points>
- For FY 2026, the scope of PV tenders will remain the same as FY 2025, covering ground-mounted PV systems with a capacity of 250 kW or more
- The ceiling price will be raised, and the same ceiling price will be applied to all four tender rounds to be conducted during the fiscal year
- The tendered capacity of the first round will be set at 91 MW, and from the second round onward, the tendered capacity will be flexibly reviewed based on the bidding results of the previous tender round
- The increase in balancing costs for FY 2026 will be 1.00 yen/kWh (0.65 cents/kWh)
- From FY 2027 onward, the transition from the FIT program to the FIP program will continue to be permitted for ground-mounted PV systems with a capacity of 10 kW or more
PV Tender for FY 2026
From FY 2027 onward, FIT/FIP support will not be applied to commercial (10 kW or more) ground-mounted PV projects; FY 2026 will be the final fiscal year of tender under the current classification
| Cieling Price |
|
| Scope of tender |
As in FY 2025, the tender will apply to ground-mounted PV systems of 250 kW or more (rooftop PV systems will be exempt from the tender scheme) |
| No. of tender rounds |
Four rounds, as in FY 2025
|
| Tendered capacity |
|
*This is premised on the parameters of the FY 2026 feed-in tariff/ standard price for ground-mounted PV systems of 50 kW or more, which will be set anew
*If approval cannot be acquired by the deadline of approval acquisition, the second-stage deposit will be forfeited in full and will not be refunded
Onshore wind power tender for FY 2026
The tendered capacity in the first round will be 0.7 GW, and an additional round will be conducted if the total bid volume exceeds 1.1 GW and so on
Balancing Costs
- The increase in balancing costs for FY 2026 will be 1.00 yen/kWh (0.65 cents/kWh)
- Any increases from FY 2027 onward will be calculated by the Procurement Price Calculation Committee in the next fiscal year
Eligible facilities for which only the FIP program is applied for new approvals
FY 2026 and FY 2027: PV projects with a capacity of 50 kW or more
Treatment of FIP transition
From FY 2027 onward, the transition to the FIP program will continue to be permitted for ground-mounted PV systems with a capacity of 10 kW or more
Treatment of projects applying for approval of change
If the feed-in tariff or related prices are revised and the latest rates are higher, the rate applicable before submitting the application for approval of change will be maintained
Requirements for approving power sources as locally-used power sources
The requirements for approving power sources as locally-used power sources for PV systems from FY 2027 onward will be examined in FY 2026 starting in April 2026 or later
Standard amount of reserve funds for dismantling, etc.
Rooftop PV systems of 10 kW or more: set at 1.12 yen/kWh (0.72 cents/kWh) for FY 2027, etc.
Figure 1 PV tender, balancing costs, and related matters for FY 2026
Source: Materials of the 113th meeting of the Procurement Price Calculation Committee (January 20, 2026), compiled by RTS Corporation