November 1, 2019
Under the Feed-in Tariff Scheme for Renewable Energy (FIT), which started in November 2009, contracts between household consumers and electricity utilities concerning the utilities’ purchasing of excess photovoltaic power generated by facilities owned by the consumers are predetermined to expire after a ten-year period. These FIT-based ten-year contracts will start to expire sequentially from November 2019.
Aiming to encourage such household consumers to smoothly shift from FIT contracts that have expired to new options for photovoltaic power generation, the Agency for Natural Resources and Energy (ANRE) decided to provide information through a website exclusively for this purpose and to open a consultation counter.
1. Expiration of FIT contracts between household consumers and electricity utilities
FIT, which started in November 2009, stipulates the period of contracts between consumers and electricity utilities concerning the utilities’ purchasing of excess photovoltaic power generated by the consumers as “ten years.” Accordingly, these FIT-based ten-year contracts will start to expire sequentially from November 2019.
The number of household facilities for photovoltaic power generation whose FIT-based ten-year contracts will expire in 2019 alone, the tenth year from the start of FIT in November 2009, is approximately 530,000. Total number of such facilities from 2019 to 2023 is expected to reach approximately 1.65 million, while the amount of photovoltaic power generated by such facilities is estimated to be 6.70 million kW.
2. Options for household consumers after the expiration of their contracts
There are two options for household consumers concerning their facilities for photovoltaic power generation whose FIT contracts have expired:
- Consume generated photovoltaic power for private use at home, etc. by connecting their facilities to electric vehicles, storage batteries or other devices; or
- Conclude a new individual-based contract with an electricity retailer or other electricity utility on a direct or freelance basis and sell the excess amount of generated power to the utility.
In choosing either of the options, household consumers should note the following:
- If a household consumer makes any changes in his/her photovoltaic power generation program, e.g., installation of a storage battery, during the period between the expiration date of the FIT contract and the date on which METI accepted a Notification of Abolishment of the Certification, which the consumer should submit for requesting the approval for stopping his/her facility and abolishing the certification, the consumer should submit a Prior Notification of Change (Format No.5-2), not a Request for Approval for Change, which was conventionally required to be submitted for the same purpose. For how to complete the procedure for change, visit here.
- If a household consumer does not make any individual-based contract with an electricity retailer or other electricity utility even after the expiration date of the FIT contract or does not determine any retailer to which he/she will sell his/her excess photovoltaic power, the consumer should note that the general electricity transmission/distribution business in the service area to which the consumer belongs will receive such excess photovoltaic power free of charge.
- If a household consumer wishes to continue to sell his/her excess photovoltaic power, the consumer should confirm the service menu of trading that electricity retailers have released, select a service plan from the menu according to his/her need, and submit a contract application form to the selected electricity retailer before the expiration date of the FIT contract.
- Household consumers under FIT will be notified of the expiration date of the FIT contract in advance by the currently contracted electricity retailers to which the consumers have been selling excess photovoltaic power. Please confirm such prior notification.
3. Opening of a website for information provision and a contact counter
Aiming to encourage household consumers to smoothly shift from FIT contracts that have expired to new options for photovoltaic power generation, ANRE will open a website for information provision for the purposes of: providing such consumers with information on electricity retailers wishing to purchase excess photovoltaic power; or raising awareness of problems among such consumers to have them avoid being involved in such problems and will also open a consultation counter to provide information on the expiration of FIT contracts.
ANRE consultation counter:
Service hours: From 9:00 to 18:00 (except Saturdays, Sundays, national holidays, and year-end and New-Year)
Division in Charge
New and Renewable Energy Division, Energy Efficiency and Renewable Energy Department, Agency for Natural Resources and Energy