Renewable Energy Purchase Prices, Surcharge Rate, and Other Details related to FIT and FIP Schemes from FY2022 Onward to Be Determined

1. Purchase Prices for FY2022 Onward

• Respecting the Procurement Price Calculation Committee's recommended purchase prices for FY2022 onward, METI will determine the prices as follows.

(1) Solar power generation

i. Solar power generation for homes and businesses (Ineligible for bids)

Power source	Scale	(For reference) FY2021	FY2022	FY2023
Solar power generation for homes	Under 10 kW	19 yen	17 yen	16 yen
Solar power generation for businesses	From 10 to less than 50 kW	12 yen	11 yen	10 yen
	50 kW or more Ineligible for bids	11 yen	10 yen	9.5 yen

Note: Regional utilization requirements for businesses generating solar power with self-consumption types (from 10 kW to under 50 kW) have been established through the FIT scheme since FY2020.

ii. Solar power generation for businesses (Eligible for bids)

Bids will determine the FY2022 purchase price. In FY2022, bidding will be possible at 1,000 kW or more with FIP certification and from 250 to under 1,000 kW with FIT certification. However, bids will be waived and the year's purchase price will be 10 yen for roof installations on existing buildings. Developers can bid up to four times in FY2022 with the maximum prices being 10.00 yen, 9.88 yen, 9.75 yen, and 9.63 yen, respectively.

(2) Wind power generation

i. Onshore wind power generation (Under 50 kW)

Power source	Scale	(For reference) FY2021	FY2022	FY2023	FY2024
Onshore wind power generation	Less than 50 kW	17 yen	16 yen	15 yen	14 yen

Note: Regional utilization requirements will be established for self-consumption and regional integrated types through the FIT scheme starting in FY2023.

ii. Onshore wind power generation (50kW or more)

Bids will determine the FY2022 purchase price. Developers can bid once in FY2022 with the maximum price being 16.00 yen. If the bid capacity exceeds 1.7 GW, however, the developer will submit an additional bid within the fiscal year. The maximum price will be the weighted average contract price from the first bid in that same fiscal year or 15.00 yen, whichever is higher.

iii. Onshore wind power generation (Replacements)

Power source	Scale	(For reference) FY2021	FY2022
Onshore wind power generation (Replacements)	Every scale	15 yen	14 yen

Note: Regional utilization requirements will be established for self-consumption and regional integrated types through the FIT scheme starting in FY2023.

iv. Offshore wind power generation (The Act on Promoting Utilization of Sea Areas in Development of Power Generation Facilities Using Maritime Renewable Energy Resources is inapplicable)

Power source	Scale	(For reference) FY2021	FY2022	FY2023	FY2024
Bottom-mounted offshore wind power generation	Every scale	32 yen	29 yen	Bidding system	-
Floating offshore wind turbine power generation	Every scale	36 yen	36 yen

(3) Geothermal power generation

Power source	Scale	(For reference) FY2021	FY2022	FY2023	FY2024
Geothermal power generation	Less than 15,000 kW	40 yen	40 yen
	15,000 kW or more	26 yen	26 yen
Geothermal power generation (With all facilities updated)	Less than 15,000 kW	30 yen	30 yen
	15,000 kW or more	20 yen	20 yen
Geothermal power generation (With original underground facilities in use)	Less than 15,000 kW	19 yen	19 yen
	15,000 kW or more	12 yen	12 yen

Note: Regional utilization requirements will be established for self-consumption and regional integrated types through the FIT scheme starting in FY2022.

(4) Small- and medium-sized hydroelectric power generation

Power source	Scale	(For reference) FY2021	FY2022	FY2023	FY2024
Small- and medium-sized hydroelectric power generation	Under 200 kW	34 yen	34 yen
	From 200 kW to under 1,000 kW	29 yen	29 yen
	From 1,000 kW to under 5,000 kW	27 yen	27 yen		-
	From 5,000 kW to under 30,000 kW	20 yen	20 yen	16 yen	-
Small- and medium-sized hydroelectric power generation	Under 200 kW	25 yen	25 yen
	From 200 kW to under 1,000 kW	21 yen	21 yen
	From 1,000 kW to under 5,000 kW	15 yen	15 yen		-
	From 5,000 kW to under 30,000 kW	12 yen	12 yen	9 yen	-

Note: Regional utilization requirements will be established for self-consumption and regional integrated types through the FIT scheme starting in FY2022.

(5) Biomass power generation

i. Biomass power generation (Ineligible for bids)

Power source	Scale	(For reference) FY2021		FY2022	FY2023
Biomass power generation (General wood, etc.)	Under 10,000kW	24 yen	24 yen
Biomass power generation (Unused materials)	Under 2,000kW	40 yen	40 yen
	2,000 kW or more	32 yen	32 yen
Biomass power generation (Construction material waste products)	Every scale	13 yen	13 yen
Biomass power generation (General waste products, other)	Every scale	17 yen	17 yen
Biomass power generation (Biogas from methane fermentation)	Every scale	39 yen	39 yen		35 yen

Note: Regional utilization requirements will be established for self-consumption and regional integrated types through the FIT scheme in 2022 for biomass power generation under 10,000 kW and in 2023 for under 2,000 kW.

ii. Biomass power generation (over 10,000 kW) using general wood, etc. / Biomass liquid fuel (Every scale)

Bids will determine the FY2022 purchase price. The maximum price will not be published.
* The amounts in the above table are the unit price per kWh. In the FIT scheme, this plus tax equals the procurement price (aside from solar power generation under 10 kW). This is the FIP scheme's base price.

(Reference) FIT/FIP Schemes / Bid Eligibility Graphic

2. FY2022 Surcharge Rate

• Based on the purchase prices in section 1, we determined that the FY2022 surcharge rate is 3.45 yen/kWh. Looking at an example of a consumer who uses 260 kWh/month as a guide, their monthly charge is 897 yen (+24 yen), and their annual charge is 10,764 yen (+288 yen).
  Note: The FY2021 surcharge rate was 3.36 yen/kWh (example consumer's monthly charge: 873 yen; yearly charge: 10,476 yen)

• The 2022 surcharge rate will be applicable on electricity charges from May 2022 to Apr. 2023 meter readings.

< Basis for calculating the surcharge rate >

Note: Includes system construction costs related to the FIP scheme and the decommissioning cost reserve system, arising from the Revised Act on Renewable Energy Special Measures going into effect (1 billion yen)

(Breakdown)

	FY2021 assumptions	FY2022 assumptions	Key factors
i. Purchase cost	3.8434 trillion yen	4.2033 trillion yen	New renewable energy generation facilities that will start operations in FY2022 Costs to ensure adjustments can be made if there are forecasting errors of renewable energy
ii. Avoidable costs, etc	1.1448 trillion yen	1.4609 trillion yen	Estimating the unit prices of avoidable costs based on past actual market prices Non-fossil fuel value trading revenue, etc.
iii. Amount of electricity sold	803.6 billion kWh	794.3 billion kWh	Estimates of electricity sales based on past actual electricity sales*

Note: The amount of electricity covered by the surcharge rates will be excluded from deductible expenses.

Division in Charge

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