Japan’s Renewable Energy Tariffs Are Coming!

According to many media sources today, the Japanese government is getting ready to finalize it’s renewable energy tariffs. According to Tokyo Shimbun, here is what they are going to be:

  • Solar 42 yen/kWh (>10kW, 20 years)
  • Solar 42 yen/kWh (<10kW, 10 years)
  • Wind 23.1 yen/ kWh ( >20 kW, 20 years)
  • Wind 57.75 yen/kWh ( <20kW, 20 years)
  • Geothermal 27.3 yen/kWh (>15MW, 15 years)
  • Geothermal 42 yen/kWh (<15MW, 15 years)
  • Small/Medium Hydro 25.2 yen/kWh (>1MW, 20 years)
  • Small/Medium Hydro 30.45 yen/kWh (<1MW, 20 years)
  • Small/Medium Hydro 35.7 yen/kWh (<200kW, 20 years)
  • Biomass 13.65 yen/kWh (recycled wood, 20 years)
  • Biomass 17.85 yen/kWh (industrial waste, sludge, etc, 20 years)
  • Biomass 25.2 yen/kWh (normal wood, 20 years)
  • Biomass 33.6 yen/kWh (unused wood products, 20 years)
  • Biomass 40.95 yen/kWh (methane gas, 20 years)

According to the NHK report, the FITs were almost exactly what the renewable energy requested – not too high, not too low – just enough to encourage the industry.

So start your motors ladies and gentleman, Japan’s race to the renewable future is about to begin!

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9 thoughts on “Japan’s Renewable Energy Tariffs Are Coming!

  1. These numbers are higher than German tariffs. Large scale solar is about three times higher.
    That probably means some nice profit margins for the early movers, which actually is explicitly called for by the law: 経済産業大臣は、集中的に再生可能エネルギー電気の利用の拡大を図るため、この法律の施行の日から起算して三年間を限り、調達価格を定めるに当たり、特定供給者が受けるべき利潤に特に配慮するものとする。 (附則第7条) (My translation: When setting the tariffs, the Minister for Economy, Trade, and Industry shall take special regard to the profits of operators for the first three years after this Law takes force, so as to aim for a massive deployment of renewable energy).

    The committee report thinks that their numbers will give internal rates of return of 6% for large scale solar. That might be a very conservative estimate, leading to a installation boom this summer.
    There are some people who are worried about that. I for one would welcome a big initial wave of installations this year. Japan wants to catch up with Germany. I hope it does so fast.

    • Thanks for your excellent feedback. I agree with you! My feeling is that there is enormous pent up demand due to the nuclear catastrophe. Growth is going to be astronomical in this market.

      Although the media is focusing on the corporate development of the market, I believe that many Japanese individuals, especially farmers, will get involved in developing new small electricity generation businesses. This should be similar to the German experience where more than half of all renewable energy generation is owned by individuals and famers. I look forward to seeing this rush to create democratized energy in Japan!

      • Yes, very encouraging – I hope they come up with something that embarrasses the neanderthal West. I will stay tuned to your blog – thank you.

  2. Pingback: Democratization Of Energy In Japan – It’ll Be Here Soon | KMB48

  3. Thank you for sharing. That is significant subsidy for performance. How does it relate to subsidies handed out to fossil and fission fuel?

    And what FIT do you see coming up for renewables like wave and tidal energy or for cogeneration that improves primary energy efficiency?

    • Thanks for you comment! I am not sure how it compares yet, but that might be a project for another post! Regarding wave and tidal and efficiency, I hope to promote it moving forward. Japan has huge amounts of wave, tidal energy, as well as excellent Co-Gen tech and manufacturing. Efficiency-wise, Japan has a long way to go in some major sectors! Exciting times!

  4. Pingback: Feed-in Tariffs Are A Very Good Thing | KMB48

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