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Japan Gives Final Approval to 10% Tariff Cut for Solar Power

Japan gave final approval to a recommendation to cut the tariff for solar power by 10 percent for the year starting April 1 to 37.8 yen (40 cents) per kilowatt hour for 20 years.

The reduction marks the first rate change since the country started an incentive program for clean energy in July. Rates for other types of clean energy such as wind and geothermal will remain unchanged, the Ministry of Economy, Trade and Industry said in a statement today.

Earlier this month, a government-appointed committee made proposals for the tariffs; today’s announcement came after approval by trade minister Toshimitsu Motegi.

The tariff for wind is 23.1 yen per kilowatt hour for 20 years, according to the ministry. Geothermal is 27.3 yen per kilowatt hour for plants with capacity of 15,000 kilowatts or larger, and 42 yen per kilowatt hour for smaller plants, both for 15 years.

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