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About the New Buyback Program for Photovoltaic Generation 【Cost recovery】

Recovery of Buyback Expenses

Costs to electricity users

Breakdown of Sector-by-Sector Electricity Consumption in JapanAccording to our estimate, the cost at the initial stage after introduction comes to \0.1/kWh, or less than \100 a month for the average family.

* The estimate is of the burden for total buyback costs. It has not taken into account avoidable costs and the differences in cost until the revision of electricity rates. Therefore, the solar surcharge may be smaller than our estimate.

  Initial 5th - 10th year
Total purchases (Yen/year) About 80 - 90 billion About 180 - 300 billion
Cost per 1kWh (Yen/ kWh) About 0.1 About 0.15 - 0.30
Cost to be born by the average family (Yen/month) About 30 About 45 - 90
Electricity consumption by standard family (kWh /month) About 300 About 300
Costs to be born by industry as a whole (Yen/month) About 3 billion About 45 - 90 billion
Costs to be born by major power-consuming industries (Yen month) About 2.35 billion About 3.5 - 7 billion
e.g.) Machinery About 0.6 billion About 0.9 - 0.18 billion
e.g.) Iron & Steel About 0.3 billion About 0.45 - 0.9 billion
e.g.) Chemical About 0.25 billion About 0.38 - 0.75 billion
Power consumption by industry as a whole (kWh/month) About 30 billion About 30 billion
Power consumption by major power-consuming industries (kWh /month) About 23.5 billion About 23.5 billion
e.g.) Machinery About ¥6 billion About ¥6 billion
e.g.) Iron & Steel About ¥3 billion About ¥3 billion
e.g.) Chemical About ¥2.5 billion About ¥2.5 billion

* Estimates are based on actual power consumption by average families and major power-consuming industries
* Source: Actual electricity demand in fiscal 2008, the Federation of Electric Power Companies of Japan