JAPANESE NEW ENERGY GETS F-I-T

Feed-in Tariff (FiT) Starts in Japan in July 2012
Naoko Lucy Abe, October 6, 2011 (SEMI Japan)

"The “Renewable Energy Bill” (“Bill on Special Measures for the Procurement of Renewable Energy Electricity by Electric Utilities”) [which offers a higher rate of return, or tariff, to those who feed New Energy into the state grid] was passed into law in the Diet on August 26, 2011 and scheduled to be enforced in July 2012…

"Under the new scheme, electric utilities are required to purchase renewable energy (photovoltaic, wind, small- and medium-scale hydro, geothermal, biomass) at fixed prices for certain periods of time determined by the national government…[T]he cost incurred by electric utilities for such purchase will be added to electric bills as a surcharge and passed on to all electric consumers…The [Ministry of Economy, Trade and Industry (METI)] will eventually determine the prices and periods…"

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"In terms of photovoltaics, purchase prices will be set according to the installation type and system capacity, and there will be no upper limit for the total amount of system installation…[and] electric utilities are required to…connect electric power generated by renewable energy to their existing grid. Advantageous pricing to power producers is expected during the [“promotion period” of the] first three years…

"…[A] measure was adopted to reduce the burden of commercial-scale utility customers using a lot of electricity…[such as the] oil, chemical, iron, paper/pulp and other industries…[S]ome adjustments are expected to be made among the regions to have the same surcharge unit rate throughout Japan…
under the new scheme…[T]he new scheme is going to pave the way to large-scale photovoltaics…"