February 23 (SeeNews) - A clean energy panel on Monday said that Japan's feed-in-tariff (FiT) for solar power should be reduced to JPY 24 (USD 0.21/EUR 0.19) per kWh for systems bigger than 10 kW to reflect lower costs and prices.
This will represent an 11% cut as compared to the current incentive rate of JPY 27/kWh that has been available since July 1. There is also a plan for the reduction of the FiT for arrays of less than 10 kW.
If given the green light, the changes in the solar tariff are to take effect at the start of the Japanese fiscal year on April 1.
Renewable energy developers receive the FiT for as much as 20 years, depending on the power source. The incentives for wind, geothermal, biomass and small hydropower plants (HPP) will remain the same for now.
Earlier this month, the Japanese government okayed changes to the country’s incentive scheme for renewable energy, including the launch of an auction system for future photovoltaic (PV) projects. The changes are expected to come into effect by April 2017.
(JPY 100 = USD 0.890/EUR 0.807)