About Japan’s Feed-In Tariff (FIT)
The Introduction of Japan’s FIT System for Renewable Energy
Japan's FIT policy for renewable energy was enacted at the beginning of July 2012 with the broad support of the Japanese public in order to accelerate the adoption of renewable energy. The policy uses an incentive structure to create a virtuous cycle of investment, innovation, and cost reductions.
Under Japan’s FIT system, electric utilities and merchants purchase renewable-generated electricity at prices and contract durations set by the Ministry of Economy, Trade and Industry. End-users then pay a surcharge to help cover the renewable portion of the total power supply.
In principle, Ichigo Green will only invest in solar plants that already have fixed, long-term FIT contracts in place with electric power utilities and merchants.
The FIT system was designed to stimulate investment in renewable energy generation by guaranteeing the purchase of electricity over the long term. This increases the likelihood of recouping the sizeable upfront cost of plant construction.
When the policy was enacted, the initial feed-in tariff was 40 yen/kWh (for plants larger than 10kW). For new contracts, the tariff is updated on an annual basis to reflect changes in construction costs due to technological innovation or increased competition. However, in principle, once the contract terms have been fixed, there will be no changes until contract maturity.
Tariff and Contract Period for Solar Power Plants of 10kW or More
This table can be scrolled horizontally.
| Contract Period (Japan Fiscal Year) |
Tariff (JPY/kWh) | Contract Duration |
|---|---|---|
| 2012 (7/1/12 - 3/31/13) | 40 | 20 Years |
| 2013 (4/1/13 - 3/31/14) | 36 | 20 Years |
| 2014 (4/1/14 - 3/31/15) | 32 | 20 Years |
| 2015 (4/1/15 - 6/30/15) | 29 | 20 Years |
| 2015 (7/1/15 - 3/31/16) | 27 | 20 Years |
| 2016 (4/1/16 - 3/31/17) | 24 | 20 Years |
| 2017 (4/1/17 - 3/31/18) | 211 | 20 Years |
| 2018 (4/1/18 - 3/31/19) | 181 | 20 Years |
| 2019 (4/1/19 - 3/31/20) | 142 | 20 Years |
| 2020 (4/1/20 - 3/31/21) | 12～133 | 20 Years |
| 2021 (4/1/21 - 3/31/22) | 11～123 | 20 Years |
| 2022 (4/1/22 - 3/31/23) | 10～113 | 20 Years |
| 2023 (4/1/23 - 3/31/24) | 9.5～103 | 20 Years |
1FIT for > 2MW non-residential solar power production determined via auction process
2FIT for > 0.5MW non-residential solar power production determined via auction process from 2019
3FIT for > 0.25MW non-residential solar power production determined via auction process from 2020
Tariff and Contract Period for Wind Power Plants (Land-Based)
This table can be scrolled horizontally.
| Contract Period (Japan Fiscal Year) |
Tariff (JPY/kWh) | Contract Duration |
|---|---|---|
| 2017 (4/1/17 - 9/30/17) | 22 | 20 Years |
| 2017 (10/1/17 - 3/31/18) | 21 | 20 Years |
| 2018 (4/1/18 - 3/31/19) | 20 | 20 Years |
| 2019(4/1/19 - 3/31/20) | 19 | 20 Years |
| 2020(4/1/20 - 3/31/21) | 18 | 20 Years |
| 2021(4/1/21 - 3/31/22) | 171 | 20 Years |
| 2022(4/1/22 - 3/31/23) | 162 | 20 Years |
| 2023(4/1/23 - 3/31/24) | 152 | 20 Years |
1FIT for > 0.25MW wind power production determined via auction process
2FIT for > 0.05MW wind power production determined via auction process
Basic Mechanism Of The Feed-In Tariff System
