Year:2012 (last updated 2017)
Policy status:In Force
Date Effective:2012 (last updated 2017)
Date Amended:

2013 (April 1st); 2014 (April 1st); 2015 (April 1st) - change of FIT rates;

2017 (April 1st);

Policy Type:Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums, Economic Instruments>Market-based instruments
Renewable Energy Policy Targets:Bioenergy, Biomass for power, Geothermal, Power, Hydropower, Solar, Solar photovoltaic, Wind, Offshore, Wind, Onshore
Policy Sector:Electricity
Size of Plant Targeted:Small and Large
Agency:Ministry of Economy, Trade and Industry (METI), Agency for Natural Resources and Energy (ANRE)
Funding:Surcharge collected from electricity users (FY2017: 2,140 billion yen)
Renewable Energy Description:

Feed-in-Tariff scheme started from July 2012, replacing RPS and revising existing purchasing scheme for PV electricity. Electric power companies are obliged to purchase electricity generated from renewable energy sources on a fixed-period contract at a fixed price. Cost for purchasing is paid by electricity users in the form of a nationwide equal surcharge. And electric power companies pay a part of the cost (the equal amount to the generation cost that they could avoid to pay by purchasing renewable electricity from the producers). Purchase price is re-examined and published in each year.

Detailed information on the purchase price is available in below section "Amendment".


Since its enforcement, purchase prices of FIT have been reexamined every year by METI. As a result, that for solar PV has been lowered and some new categories have been created for wind, hydro and biomass. Detailed prices are featured in the below table. 

On April 2017, the FIT scheme was partially amended. This amendment introduces a new approval system for renewable power generation projects that require grid connection agreement with the utility beforehand. The amended FIT scheme ensures appropriate project implementation. It requires maintenance and inspection during the project construction, operation and assures appropriate project decommission and panel disposal at the end of the project lifetime. The amendment enables METI to order improvements to the project or to rescind authorization of offenders.

As for purchase prices, METI should set mid- and long-term purchase price targets. METI should also indicate multi-year purchase prices in advance for residential PV, wind and power sources with a long lead time (eg. geothermal, small & mid-scale hydro).

IEA_RE PAMS_JAPAN_Feed in tariff levels 2017 to 2019

And the purchase prices for PV projects with a capacity of 2 MW or more should be decided through auctions. METI holds 3 auctions in FY2017 and FY2018 and the total auction volume is estimated at 1-1.5 GW. In the first to third auctions, the bid price is adopted as the purchase price (pay-as-bid method). Winning bid prices are contracted for a period of 20 years. The first auction for utility-scale auction took place in 2017. 


This record supersedes:Green Power: Renewable Portfolio Standards (RPS) , Purchasing Scheme for Solar PV Electricity

Last modified: Mon, 09 Apr 2018 14:47:36 CEST