The Japan News reported on Saturday the widely-predicted cut in Japanese solar FITs could be introduced as early as the end of this month.
The English language website of the Yomiuri Shimbun newspaper stated the government had approved the recommendation of a panel established to set the FIT level for the new fiscal year.
According to the report, the FIT paid to commercial generators from installations of 10 kWh or more will be cut by JPY4 (US$0.04) from JPY36 to JPY32/kWh, more in line with Bloomberg New Energy Finance’s predictions of a 14% cut than Deutsche Bank’s more optimistic 10% call.
Residential FIT falls JPY1
The residential FIT will fall from JPY38 to JPY37/kWh with the falls down to a reduction in the price of solar panels, according to the newspaper report.
Japan has acted as a magnet for solar companies since prime minister Shinzo Abe introduced the world’s most generous solar FIT as part of his ‘Abenomics‘ plan to use public money to stimulate a recovery in the nation’s economy.
Japanese electrical engineering company Yondenko today announced plans for a JPY 3.1 billion, 12.5 MW solar plant on a former factory site in Kagawa prefecture, in western Japan.
According to a Bloomberg report about the scheme, the company already has a 2.5 MW plant in Kagawa and plans for nine more.