For the solar power for business use, the purchase price to be reduced to half of the current priceーThe goal of ” 7 yen per l kWh” will be set from FY2025 to FY2027, ahead of schedule.
The Ministry of Economy, Trade and Industry and the Agency for Natural Resources and Energy announced the policy that the purchase price of the solar power for business use, FIT (Feed-in Tariffs), will reduce to half of the current price as early as 2022 at the expert opinion meeting on 12th September.
As for residential use, the price will be reduced to around 11 yen same level of the wholesale market in FY2025 and on. As one of the measures to reduce the price, they will eliminate the application constrain of the bidding system currently limited to the mega solar system with more than 2,000 kW of output and deepen the study to target all the solar power for business use.
The Agency for Natural Resources and Energy also presented this policy on same day at “The subcommittee of the massive introduction of renewable energy / next generation electricity network ” of the Total Resource Energy Conference(Chairman is Dr, Kenji Yamaji, Board of director/Director of the Research Institute for Innovative Technology for Earth)
The government sets the target that the power generation cost of the solar power for business use should reach “7 yen per 1 kWh” before 2030. However, the government try to reach this target ahead of schedule in FY2025-27.
For this reason, considering the lead time of approximately 3 years from the certification to the start of operation, the average purchase price to be certified will be reduced to about 8.50 yen, which is half of the current price, in FY2022-24.
Source: Monthly Magazine “Energy Conservation”