Japan Extends Timeline For Solar FiT Cuts

Japan’s Ministry of Economy, Trade and Industry To Allow Grid Connection Applications For Solar Power Projects Of At Least 2 MW Approved Under FiT Regime By Sept 2019; Commercial Start Could Be By Sept 2020: Reuters
06:38 AM (Beijing Time) - 07. December 2018
japan larges pv plant

Unlike the operational 235 MW Setouchi Kirei Solar Power Plant, PV power plants under development face severe support cuts if their grid connection applications are not submitted by the end of September 2019; however, this is half a year longer than the government had originally foreseen. (Photo Credit: Kuni Umi Asset Management Co. Ltd.)

Key Takeaways

  • METI of Japan has extended the timeline for solar power projects approved between 2012 and 2014 to submit grid connection applications by September 2019, according to Reuters
  • This will be applicable to projects of at least 2 MW whose commercial operation date has also been extended to the end of September 2020
  • Those who miss this extended deadline will have to rest with reduced FiT of JPY 21 ($0.19) per kWh

Japan’s Ministry of Economy, Trade and Industry (METI) has extended the period solar power project developers of capacities of at least 2 MW can submit grid connection applications for their projects by half a year until the end of September 2019. These will now be allowed to start commercial operations for their projects by the end of September 2020, reported Reuters.

In November 2018, Reuters reported METI had proposed to cut subsidies for projects approved between 2012 and 2014 if they do not submit grid connection applications by March 2019, angering investors and solar power project operators, and endangering 23.5 GW PV (see Reuters: 23.5 GW PV At Risk In Japan).

If developers are unable to match the revised deadline still, they will have to make peace with an FiT of JPY 21 ($0.19) per kWh, as against the original range of JPY 32 to JPY 40 ($0.28 to $0.36) per kWh.

METI had suggested these cuts to weed out non-serious players and to push developers to speed up project implementation, as well as to reduce financial burden the FiT subsidies are putting on consumers.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani