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

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

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."

Gradual Reduction of Buyback Prices