Japan's Solar Electric Approvals to be Cut

The Japan News. February 14, 2014. By Yomiuri Shimbun. The economy ministry is likely to withdraw the approvals issued under a feed-in tariff system to about 670 operators that have not proceeded with construction of solar power generation facilities, The Yomiuri Shimbun has learned. The Economy, Trade and Industry Ministry may start canceling the approvals as early as March, after investigating such operators. The ministry also intends to cancel its approvals for about 780 solar power operators that have secured only land or facilities, unless they can secure both by the end of August. Under the feed-in tariff system, power companies are obliged to purchase electricity generated from renewable energy sources at a price fixed at the time an operator receives approval. At the introduction of the FIT system in 2012, the rate for solar power was ¥42 per kilowatt-hour. The costs incurred by utilities in buying solar power electricity at higher rates than regular electricity will be passed on to consumers through electricity rates.Although the price for utilities to purchase solar power has fallen since then due to a decline in the installation costs for solar power generation systems, operators would still able to sell the solar-generated electricity at the relatively high price, which was fixed at the time of approval.

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