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Agency for Natural Resources and EnergySettlement of FY 2016 Purchase Prices and FY 2016 Surcharge Rates under the Feed-in Tariff Scheme for Renewable Energy

The Ministry of Economy, Trade and Industry (METI) has determined the FY 2016 purchase prices for newcomers and FY 2016 surcharge rates under the Feed-in Tariff Scheme for Renewable Energy.

1. FY 2016 purchase prices for newcomers

  • The Procurement Price Calculation Committee compiled and publicized recommendations concerning the FY 2016 purchase prices and the periods therefor. Respecting the recommendations, METI finalized the prices and periods therefor as below.

(1) Electricity generated by photovoltaic power for non-household customers (10 kW or more)

FY 2015 FY 2016
Purchase price (excluding tax) 27 yen/kWh=> 24 yen/kWh

(2) Electricity generated by photovoltaic power for household customers (10 kW or less)

FY 2015 FY 2016
Purchase price When generators are not required to have output control equipment installed 33 yen/kWh=> 31 yen/kWh
When generators are required to have output control equipment installed 35 yen/kWh=> 33 yen/kWh

(3) Other renewable energy (land-based wind power, offshore wind power, geothermal power, small and medium hydropower, and biomass)

The purchase prices and the periods therefor remain the same as such prices and periods in FY 2015.

[Reference] FY 2016 list of purchase prices
Category FY 2015 FY 2016
Photovoltaic power 10 kW or more 29 yen (April 1 to June 30), 27 yen (from July 1) 24 yen
Less than 10 kW When generators are not required to have output control equipment installed 33 yen 31 yen
When generators are required to have output control equipment installed 35 yen 33 yen
Land-based wind power 20 kW or more 22 yen 22 yen
Less than 20 kW 55 yen 55 yen
Offshore wind power 20 kW or more 36 yen 36 yen
Geothermal power 15,000 kW or more 26 yen 26 yen
Less than 15,000 kW 40 yen 40 yen
Small and medium hydropower 1,000 kW or more but less than 30,000 kW Installing completely new facilities 24 yen 24 yen
Utilizing existing canals 14 yen 14 yen
200 kW or more but less than 1,000 kW Installing completely new facilities 29 yen 29 yen
Utilizing existing canals 21 yen 21 yen
Less than 200 kW Installing completely new facilities 34 yen 34 yen
Utilizing existing canals 25 yen 25 yen
Biomass Wood (unused) 2,000 kW or more 32 yen 32 yen
Less than 2,000 kW 40 yen 40 yen
Wood (general) 24 yen 24 yen
Wood (waste materials from building demolition) 13 yen 13 yen
Waste materials 17 yen 17 yen
Methane fermentation 39 yen 39 yen

2. FY 2016 surcharge rates

  • METI calculated possible FY 2016 surcharge rates based on the purchase prices and other factors above in Item 1 and as a result, determined that the rate should be 2.25 yen/kWh. The monthly and annual surcharges collected from average households which consume 300 kWh per month will be 675 yen and 8,100 yen based on this rate, respectively.
  • Please note that the FY 2016 surcharge rates will be added to the electricity rates billed from May 2016 to April 2017.

Basis for calculating the surcharge rate

Surcharge rate 2.25 yen/kWh =
(i) Purchase cost 2,300 billion yen - (ii) Avoidable costs 497.5 billion yen + Administrative expenses of expense-sharing coordinating bodies 290 million yen
(iii) Amount of electricity sold 802.5 billion kWh

Breakdown of the figures
Estimate in FY 2015 Estimate in FY 2016
(i) Purchase cost 1,837 billion yen 2,300 billion yen ・ Increased the hours of usable sunlight for electricity generated by photovoltaic power for household customers and also increased the number of solar facilities which will newly start operations in FY 2016.
(ii) Avoidable costs 514.8 billion yen 497.5 billion yen ・ Considered the risk of a fall in avoidable costs associated with a fall in fuel adjustment costs.
(iii) Amount of electricity sold 836.6 billion kWh 802.5 billion kWh ・ Calculated based on the results for the amount of electricity sold in 2015, taking into consideration the downward trend in the amount in recent years.*

* The amount of electricity that will be covered by the surcharge rates shall be excluded from deductible expenses.

Release date

March 18, 2016

Division in Charge

New and Renewable Energy Division, Energy Conservation and Renewable Energy Department, Agency for Natural Resources and Energy

Related Information

Renewable Energy

Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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