The Tokyo Metropolitan Government (TMG) has begun accepting applications for its FY2026 Leading Project for Expanding Renewable Energy Sources by Electric Retailers, a program that encourages the development of new renewable energy generation projects while increasing the supply of clean electricity to consumers in Tokyo.

Applications will be accepted from July 2026 through March 31, 2027, giving eligible electricity retailers several months to prepare and submit proposals. TMG has significantly expanded the program’s budget for FY2026, raising it to 1.91 billion yen (approximately US$11.8 million) — an increase of 1.04 billion yen (approximately US$6.4 million) over the previous fiscal year. The increase underscores Tokyo’s continued commitment to accelerating renewable energy deployment as part of its broader decarbonization strategy.

Under the program, TMG will subsidize up to 50% of eligible costs, including project planning and design, equipment procurement, facility installation, and construction. By lowering the upfront investment required for renewable energy projects, the initiative aims to improve project economics and encourage greater private-sector participation.

The subsidy is available to electricity retailers developing new renewable energy generation facilities, either independently or in partnership with renewable power producers. To qualify, applicants must be able to supply both the generated renewable electricity and its associated environmental attributes to consumers within Tokyo — a requirement designed to ensure that the benefits of newly developed renewable projects directly reduce the carbon footprint of the capital’s electricity consumption.

The program is expected to support a wide range of renewable energy projects, expanding local clean energy supplies while strengthening collaboration between electricity retailers and renewable energy developers. As electricity demand grows alongside corporate decarbonization efforts and rising electrification, the subsidy is expected to play an important role in securing additional renewable energy resources for Tokyo.

Through this expanded financial support, Tokyo continues to position itself among Japan’s leading local governments in advancing the transition to a low-carbon energy system. The FY2026 program reflects the city’s ongoing efforts to accelerate renewable energy deployment, stimulate private investment, and advance its long-term climate and carbon neutrality goals.