METI Sets the Surcharge Rate for FY2024, the Renewable Energy Purchase Prices for FY2024 Onward, and Other Details Relating to the FIT and FIP Schemes

1. Purchase Prices and Other Details for FY2024 Onward

• In accordance with the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities (hereinafter the Act,) METI sets the purchase prices and other details prior to the start of each fiscal year, basing its decisions on factors such as how much it generally costs to efficiently supply renewable energy electricity, and taking into account matters such as appropriate profits. When doing so, it respects the opinions of the Calculation Committee for Procurement Prices (hereinafter the Committee,) as stipulated by the Act.
• Respecting the “recommendations made by the Committee on procurement prices for FY2024 onward and other details”, METI will set the purchase prices and other details for FY2024 onward as shown in red below.

*Regarding procurement prices, a consumption tax is added to the relevant prices if FIT-certified businesses are taxable enterprises. The relevant prices include a consumption tax if FIT-certified businesses are tax-exempt enterprises.

*An amount equivalent to the surcharge on the generator side is added to the purchase price if maximum power receiving is 10 kW or more.

(1) Solar power generation

①Solar power generation for homes and businesses (Ineligible for bidding)

Power source	Scale	(Reference) FY2023 1st Half	(Reference) FY2023 2nd Half	FY2024	FY2025
Solar power generation for homes	Less than 10kW	16yen		16yen	15yen
Solar power generation for businesses (Ground installation)	10kW or more less than 50kW	10yen		10yen	10yen
	50kW or more Ineligible for bidding	9. 5yen		9.2yen	8.9yen
Solar power generation for businesses (Roof installation)	10kW or more less than 50kW	10yen	12yen	12yen	11.5yen
	50kW or more	9.5yen

Note: In the FIT scheme, regional utilization requirements for self-consumption types have been set with regard to solar power generation for businesses (10 kW to under 50 kW.)

②Solar power generation for businesses (Eligible for bidding)

Bidding will be conducted to decide the FY2023 purchase price. In FY2024, eligibility for bidding will be 250 kW or more for FIP certification. (Roof installation will be exempted from bidding.) Bids will be invited four times in FY2024, and the upper limit of the bid will be 9.20 yen, 9.13 yen, 9.05 yen and 8.98 yen respectively.

（2）Wind power generation

①Onshore wind power generation（Under 50kW）

Power source	Scale	(Reference) FY2023	（Reference） FY2024	（Reference） FY2025	FY2026
Onshore wind power generation	Less than 50kW	15yen	14yen	13yen	12yen

Note: In the FIT scheme, regional utilization requirements for self-consumption and regional-integration types have been set.

②Onshore wind power generation (50 kW or more)

Bidding will be conducted to decide the FY2024 purchase price. One round of bidding will be conducted in FY2024, with the upper limit of the bid being 14 yen. However, if the bidding capacity exceeds 1.3 GW, an additional round of bidding will be conducted within the fiscal year. The upper limit of the bid for it will be the higher of the following: 14 yen, or a weighted average of the winning bids in the other rounds of bidding conducted that year.

③Onshore wind power generation (Replacements)

Power source	Scale	（Reference） FY2023	FY2024
Onshore wind power generation (Replacements)	Every scale	13yen	12yen

Note: In the FIT scheme, regional utilization requirements for self-consumption and regional-integration types have been set.

④Bottom-mounted offshore wind power generation (Not covered by the Act on Promoting Utilization of Sea Areas for the Development of Marine Renewable Energy Power Generation Facilities)

Bidding will be conducted to decide the FY2023 purchase price. The upper limit of the bid will not be published beforehand.

⑤Floating offshore wind power generation (Not covered by the Act on Promoting Utilization of Sea Areas for the Development of Marine Renewable Energy Power Generation Facilities)  

Power source	Scale	（Reference） FY2023	（Reference） FY2024	（Reference） FY2025	FY2026
Floating offshore wind power generation	Every scale	36yen			36yen

（3）Geothermal power generation

Power source	Scale	（Reference） FY2023	（Reference） FY2024	（Reference） FY2025	FY2026
Geothermal power generation	Less than1,000kW	40yen			40yen
	1,000kW or more Less than 15,000kW	40yen			Variable in line with generating power
	15,000kW or more Less than 30,000kW	26yen
	30,000kW or more	26yen			26yen
Geothermal power generation (With all facilities updated)	Less than1,000kW	30yen			30yen
	1,000kW or more Less than15,000kW	30yen			Variable in line with generating power
	15,000kW or more Less than 30,000kW	20yen
	30,000kW or more	20yen			20yen
Geothermal power generation (With original underground facilities used as they are)	Less than1,000kW	19yen			19yen
	1,000kW or more Less than15,000kW	19yen			Variable in line with generating power
	15,000kW or more Less than 30,000kW	12yen
	30,000kW or more	12yen			12yen

Note: In the FIT scheme, regional utilization requirements for self-consumption and regional-integration types have been set.

Note: In the scale of 1,000 kW and less than 30,000 kW, the price (generating power x kW) is calculated by the following formula:

purchase price for less than 1,000kW = a yen/kWh
purchase price for 30,000kW = b yen/kWh

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

Power source	Scale	（Reference） FY2023	（Reference） FY2024	FY2025	FY2026
Small- and medium-sized hydroelectric power generation	Less than 200kW	34yen			34yen
	200kW or more Less than 1,000k	29yen			29yen
	1,000kW or more Less than 5,000kW	27yen		23yen	-
	5,000kW or more Less than 30,000kW	16yen		16yen	-
Small- and medium-sized hydroelectric power generation (Utilizing existing water conduits)	Less than 200kW	25yen			25yen
	200kW or more Less than 1,000kW	21yen			21yen
	1,000kW or more Less than 5,000kW	15yen		14yen	-
	5,000kW or more Less than 30,000kW	9yen		9yen	-

Note: In the FIT scheme, regional utilization requirements for self-consumption and regional-integration types have been set.

（5）Biomass power generation

①Biomass power generation (Ineligible for bidding)

Power source	Scale	（Reference） FY2023	（Reference） FY2024	FY2025
Biomass power generation (General timber, etc.)	Less than10,000kW	24yen		24yen
Biomass power generation (Unused materials)	Less than 2,000kW	40yen		40yen
	2,000kW or more	32yen		32yen
Biomass power generation (Construction material waste products)	All scales	13yen		13yen
Biomass power generation (General waste products / other)	All scales	17yen		17yen
Biomass power generation (Biogas from methane fermentation)	All scales	35yen		35yen

Note: In the FIT scheme, regional utilization requirements for self-consumption and regional-integration types have been set.

②Biomass power generation using general timber, etc. (Over 10,000 kW) / Biomass liquid fuel (Every scale)

Bidding will be conducted to decide the FY2024 purchase price. The upper limit of the bid will not be published beforehand.

（Reference）Graphic showing FIT/FIP Schemes and Bid Eligibility

*1) The FIP scheme is permitted for commercial solar power under 50 kW if certain conditions are met.

*2) Replacements are ineligible for bidding, and under 1,000 kW, either FIT or FIP can be selected.

*3) For floating offshore wind power, either FIT or FIP can be selected.

Note: In addition, for supply areas such as the Okinawa region and remote islands, FIT can be selected without regional utilization requirements.

*1) Replacement geothermal and small and medium-sized hydroelectric power generation facilities will be handled the same as new ones.

Note: For supply areas such as the Okinawa region and remote islands, FIT can be selected without regional utilization requirements for any the power sources.

*2) Biomass power generation (excluding liquid fuels) installed in waste incineration facilities can be selected as FIT (with regional utilization requirements) or FIP (Ineligible for bidding) in the range of 50 kW to 2,000 kW.

2. FY2024 Surcharge Rate

• The Minister of Economy, Trade and Industry sets the surcharge rate prior to the start of each fiscal year, in accordance with the calculation methods specified in the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities.

• The surcharge rate for FY2024 will be 3.49 yen per kWh, based on the status of the introduction of renewable energy and prices determined in the wholesale electricity market. Looking at an example of a consumer who uses 400 kWh/month as a rough guide*, their monthly charge is 1,396 yen, and their annual charge is 16,752 yen.

* Monthly electricity consumption for ordinary households based on a survey of family income and expenditure conducted by the Ministry of Internal Affairs and Communications.

• The FY2024 surcharge rate will apply to the electricity charges for meter readings from May 2024 to April 2025.

(Breakdown)

	FY2022 assumptions	FY2023 assumptions	FY2024 assumptions	Key factors
①Purchase costs, etc.	4.2033trillion yen	4.7477trillion yen	4.8172trillion yen	New renewable energy generation facilities that will go into operation in FY2024 Costs to ensure sufficient adjustments can be made to accommodate errors in predictions regarding renewable energy
②Avoidable costs, etc.	1.4609trillion yen	3.6353trillion yen	2.1322trillion yen	Estimating the unit prices of avoidable costs based on past actual market prices
③Amount of electricity sold	794.3billion kWh	794.6billion kWh	770.7billion kWh	Estimating electricity sales* based on actual figures in the past and the demand forecast by the OCCTO

*The amount of electricity covered by the surcharge rate in deductible expenses will be excluded.

Division in Charge

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