Ministry of Economy, Trade and Industry
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New Buyback Program for Photovoltaic Generation in Japan (October 2009)

Significance of Photovoltaic Generation

Energy in Japan

  • Dependant on fossil fuels for 80% of the primary energy supply
  • 90% of the necessary fossil fuels are imported
  • There is a need to diversify energy sources and respond to global warming issues

Photovoltaic generation

  • Is unlimited and available in Japan
  • Does not emit CO2

Industrial and economic importance

  • Japan has superior technology
  • Wide-ranging supporting industries in such fields as materials, peripheral equipment, and construction

Characteristics of Japanese photovoltaic generation

  • About 80% of the photovoltaic generation devices now in operation are installed on the roofs of houses
  • Photovoltaic generation devices can be installed in existing houses, new houses, and apartment buildings
  • Their prices are expected to decline in the near future

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Scenario for Introduction of Photovoltaic Generation (Estimate)

Scenario for Introduction of Photovoltaic Generation

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Promotion of Photovoltaic Generation

Has so far provided

  • Subsidies and tax breaks for the introduction of devices for both residential and non-residential use
  • The RPS Act (requiring electric power suppliers to introduce a certain amount of new energy)
  • Support for technological development

In addition to the above measures,

  • Introduction of a system to buy surplus solar electricity at high prices

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Outline of Subsidy and Tax Systems to Support the Introduction of Photovoltaic Generation

Outline of subsidy and tax systems to promote the introduction of photovoltaic generation
  For residential use For non-residential use
Subsidy ¥70,000/kW to the systems priced at
¥700,000/kW or lower that meet quality guarantees and other requirements
・Local governments, etc. 1/2 of introduction cost
・Private business operators 1/3 of introduction cost
Tax ・Mortgage tax breaks for new housing
・Tax breaks for remodeling houses to conserve energy
・7% tax deduction (SMEs) or immediate amortization
・Exception to the fixed asset tax

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Ministry of Economy, Trade and Industry
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