Japan Finalizes 11% Solar Incentive Cut, Maintains Wind Tariffby
Japan finalized an 11 percent cut to the incentive it offers to producers of solar power for the year starting April 1 to take account of lower system costs.
The rate for solar projects with 10 kilowatts of capacity or larger was reduced to 24 yen (22 cents) per kilowatt hour from a current tariff of 27 yen, the Ministry of Economy, Trade and Industry said in a statement Friday. The solar rates are valid for 20 years.
The approved rates were based on proposals by a panel of experts last month for so-called feed-in tariffs. The incentives were introduced in July 2012 to diversify Japan’s energy sources.
Japan will maintain the rates for other clean energy sources such as wind, biomass, geothermal and small hydro at current levels, according to the statement.
The rates are subject to review every year by the panel.