METI Sets the Surcharge Rate for FY2025, Renewable Energy Purchase Prices for FY2025 Onward, and Other Details Relating to the FIT and FIP Schemes

1. Purchase prices and other details for FY2025 onward (highlights)

In accordance with the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities (hereinafter referred to as the “Act”), the Minister of Economy, Trade and Industry sets the purchase prices and other details prior to the start of each fiscal year, basing his or her decisions on such factors as how much it generally costs to efficiently supply renewable energy electricity, and taking into account such matters as appropriate profits. When doing so, the Minister respects the opinions of the Calculation Committee for Procurement Prices (hereinafter referred to as the “Committee”) as stipulated by the Act.

Respecting the recommendations made by the Committee on procurement prices for FY2025 onward and other details, METI will set the purchase prices and other details for FY2025 onward as shown in red below.

(1) Solar power generation

[i] Solar power generation for homes and businesses (ineligible for bidding)

Power source	Scale	(Reference) FY2024	(Reference) FY2025 1st half	FY2025 2nd Half	FY2026
Solar power generation for homes	Less than 10 kW	16 yen	15 yen	Support scheme for the initial investment
Solar power generation for businesses (ground installation)	10 kW or more but less than 50 kW	10 yen	10 yen		9.9 yen
	50 kW or more (ineligible for bidding)	9.2 yen	8.9 yen		8.6 yen
Solar power generation for businesses (roof installation)	10 kW or more	12 yen	11.5 yen	Support scheme for the initial investment

Note: To accelerate the introduction of solar power generation equipment installed on roofs, METI will introduce the support scheme for the initial investment in the second half of FY2025 within the scope of not increasing the burden on the people. METI will also set the rates for solar power generation for homes at 24 yen (up to 4 years) and 8.3 yen (5 to 10 years), and the rates for solar power generation for businesses (roof installation) at 19 yen (up to 5 years) and 8.3 yen (6 to 20 years).

[ii] Solar power generation for businesses (eligible for bidding)

Bidding will be conducted to decide the FY2025 purchase price. In FY2025, 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 FY2025, and the upper limit of the bid will be 8.90 yen, 8.83 yen, 8.75 yen, and 8.68 yen, respectively.

(2) Wind power generation

[ⅰ] Onshore wind power generation (less than 50kW)

Power source	Scale	(Reference) FY2024	(Reference) FY2025	(Reference) FY2026	FY2027
Onshore wind power generation	Less than 50 kW	14 yen	13 yen	12 yen	11.8 yen

[ⅱ] Onshore wind power generation (50 kW or more)

Bidding will be conducted to decide the FY2025 purchase price. One round of bidding will be conducted in FY2025, and the upper limit of the bid will be 13 yen. However, if the bidding capacity exceeds 1.2 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 one of the following: 12 yen or a weighted average of the winning bids in the rounds of bidding conducted that year.

[ⅲ] Onshore wind power generation (replacements)

Power source	Scale	(Reference) FY2024	FY2025
Onshore wind power generation (replacements)	All scales	12 yen	12 yen

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

Bidding will be conducted to decide the FY2025 purchase price. The upper limit of the bid will not be published beforehand.

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

Power source	Scale	(Reference) FY2024	(Reference) FY2025	(Reference) FY2026	FY2027
Floating offshore wind power generation	All scales	36 yen			36 yen

(3) Geothermal power generation

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

Note: As JOGMEC expands resource surveys, risks involving resource development for businesses are expected to diminish. Accordingly, the FY2027 purchase price will be discussed by the Committee in its meetings in FY2025 onward in light of the discussions on the degree of the diminishment in the risks.

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

Power source	Scale	(Reference) FY2024	(Reference) FY2025	FY2026	FY2027
Small- and medium-sized hydroelectric power generation	Less than 200 kW	34 yen			34 yen
	200 kW or more but less than 1,000 kW	29 yen			29 yen
	1,000 kW or more but less than 5,000 kW	27 yen	23 yen	23 yen	-
	5,000 kW or more but less than 30,000 kW	16 yen		16 yen	-
Small- and medium-sized hydroelectric power generation (utilizing existing water conduits)	Less than 200 kW	25 yen			25 yen
	200 kW or more but less than 1,000 kW	21 yen			21 yen
	1,000 kW or more but less than 5,000 kW	15 yen	14 yen	14 yen	-
	5,000 kW or more but less than 30,000 kW	9 yen		9 yen	-

(5) Biomass power generation

[ⅰ] Biomass power generation (ineligible for bidding)

Power source	Scale	(Reference) FY2024	(Reference) FY2025	FY2026
Biomass power generation (general timber, etc.)	Less than 10,000 kW	24 yen		24 yen
Biomass power generation (unused materials)	Less than 2,000 kW	40 yen		40 yen
	2,000 kW or more	32 yen		32 yen
Biomass power generation (construction material waste products)	All scales	13 yen		13 yen
Biomass power generation (general waste products and others)	All scales	17 yen		17 yen
Biomass power generation (biogas from methane fermentation)	All scales	35 yen		35 yen

[ⅱ] Biomass power generation using general timber, etc., (10,000 kW or more) and biomass liquid fuels (All scales)

Bidding will be conducted to decide the FY2025 purchase price. The upper limit of the bid will not be published beforehand. Support for this category will end since FY2026.

(Reference) Graphic showing FIT/FIP schemes and bid eligibility

Note 1) The FIP scheme is permitted for commercial solar power of less than 50 kW if certain conditions are met.

Note 2) Replacements are ineligible for bidding. In particular, either FIT or FIP can be selected for less than 1,000 kW.

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

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

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

Note 2) Biomass power generation using general timber, etc., (10,000 kW or more) and biomass liquid fuel (all scales) will not be covered by the FIT/FIP schemes from FY2026.

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

Note: 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 or more but less than 2,000 kW.

2. FY2025 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 FY2025 is set at 3.98 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,* the monthly charge is 1,592 yen and the annual charge is 19,104 yen.

Note: 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 FY2025 surcharge rate will apply to the electricity charges for meter readings from May 2025 to April 2026.

(Breakdown)

	FY2024 assumptions	FY2025 assumptions	Key factors
(1) Purchase costs, etc.	4.8172 trillion yen	4.8540 trillion yen	New renewable energy generation facilities that will go into operation in FY2025 · Costs for ensuring sufficient adjustments so as to accommodate errors in predictions regarding renewable energy
(2) Avoidable costs, etc.	2.1322 trillion yen	1.7906 trillion yen	Estimating the unit prices of avoidable costs linked to market prices, which are based on past actual market prices · Taking into account the surplus or deficit at the end of the FY2023
(3) Amount of electricity sold	770.7 billion kWh	770.8 billion kWh	Estimating electricity sales* based on actual figures in the past and the demand forecast by the OCCTO

*Note: 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