New feed-in tariffs (FITs) for PV installations in Japan are expected to begin in July.
Under the proposal, nonresidential systems under 10 kW will receive 40 yen/kWh for 20 years, excluding tax, according to a research note from Jefferies & Co. Residential systems under 10 kW will receive 42 yen/kWh for 10 years, including tax.
The FIT levels are in line with a proposal from the Japan Photovoltaic Energy Association, Jefferies & Co. notes, adding that the announcement is a ‘positive’ for Japan's PV industry.
‘We would expect a financing component to be introduced with low-cost, easily accessible financing,’ the Jefferies analysts write. ‘With this, the program will be one of the most attractive globally. We estimate Japan will grow to over 10 percent of the global PV market by 2013 from [approximately] 5 percent of the total today.’