The Japanese parliament has passed a renewable energy bill that provides a guaranteed feed-in tariff (FIT) for solar power and other forms of renewable energy. The new law calls for Japan's trade and energy minister to set the FIT rates annually; the first rate, to be implemented when the law takes effect July 1, 2012, has not yet been determined.
This lack of specificity means that solar companies may wait before fully jumping into Japan's market, according to a report from Bloomberg. The Japanese government must also develop a framework for utility deregulation.
Overall, the new law is expected to be a ‘strong positive’ for the solar sector, said analysts from Jefferies & Co. in a recent research note. The Japanese government has set a target of 28 GW of solar installed in the country by 2020, and Jefferies predicts 4.8 GW of cumulative installation by the end of this year.