Ministry of Economy, Trade and Industry
Font Size Change
S
M
L

About the New Buyback Program for Photovoltaic Generation 【Buyback price/period】

  • ¥48/kWh for residential use. The buyback price from factories, business establishments and schools is set lower at ¥24/kWh in view of their high subsidy rates.
    (Both prices are about twice as high as current voluntary buyback prices.)
  • For others (such as for mega solar and powergeneration purposes), prices will be determined in negotiations with electric power companies.
  • In the case of “double generation” (photovoltaic generation plus fuel cells, etc.), the price is ¥39/kWh for residential use (¥20/kWh for factories).
  • Buyback prices in and after the second year are to be reduced by about a half in five years, in line with the progress in introduction of panels and their price trends.
  • Buybacks will continue for 10 years after the start of the program.

Buyback Price (from November 2009)

Buyback Price (from November 2009)

Estimate of cost recovery in the photovoltaic generation system (In the case of a new system: Model case)

Estimate of cost recovery in the photovoltaic generation system (In the case of a new system: Model case)

(*1) The price of a photovoltaic generation system is an estimate based on applications for subsidies filed from January to March, 2009. Interest rates involved in system installation, maintenance costs, and repair costs after installation have not been taken into account.

(*2) Subsidy: ¥70,000/1kWh plus mortgage tax break (about ¥190,000)

(*3) Revenue from sales of green electricity value (captive consumption) is calculated on the assumption that the value is about ¥5 per 1kWh. Separate contracts with certificate issuers are necessary. The amount and availability of subsidies depend on each local government. On average, the amount of subsidies provided by local governments (prefectural or municipal levels) is about ¥3.8/kWh (FY2008). (Example) The Tokyo Metropolitan government started a ¥100,000/kWh subsidy system in April 2009.

(*4) The estimate is based on the following assumptions. Generating capacity: 3.5kW, electricity sales ratio: about 60%, power generation efficiency: about 12%, unit price of electricity sold: ¥24/kWh at present and ¥48/kWh under the new system.

Gradual Reduction of Buyback Prices

Summary of discussions at meetings of the Renewable Energy Department (excerpt)

"Buyback prices will be reduced gradually each year after the system is installed. Actual prices will be set by taking into account the predictability of system installing parties, producers, distributors and related industries, with the aim of reducing the price by about a half in three to five years."

  • Buyback prices in the next fiscal year and beyond will be reduced by taking into account the progress in systems being introduced and the trend of their market prices. The prices will be reviewed every fiscal year by a buyback system subcommittee.
  • Price reviews will be conducted from the perspective of reducing the system prices by half within the next three to five years.
Gradual Reduction of Buyback Prices
 
Ministry of Economy, Trade and Industry
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
Copyright Ministry of Economy, Trade and Industry. All Rights Reserved.