Meta Data

Draft:

Revision of previous policy?:

Effective Start Year:

2009

Scope:

National

Document Type:

Programme

Economic Sector:

Power

Energy Types:

Power, Renewable, Solar

Issued by:

Ministry of Economy, Trade and Industry

Source:

Ministry of Economy, Trade and Industry

File:

The New Buyback Program for Photovoltaic Generation

The New Buyback Program for PV Generation: Costs to electricity users

Overall Summary:

The Programme is part of Japan’s promotion measures for renewable energy introduction. It applies only to surplus electricity generated using PV power systems. Purchase at a fixed price is guaranteed for 10 years from the start of the program. An all-participating system in which surcharges are collected from all electricity users.

Renewable Energy

Net metering:

[The Programme] applies only to surplus electricity generated using PV power systems. Purchase at a fixed price is guaranteed for 10 years from the start of the program.---The initial purchase price is set at ¥48/kWh for households (less than 10 kW) and ¥24/kWh for others. In the case where private power generators are co-equipped, the prices are ¥39/kWh and ¥20/kWh, respectively.

RE capital subsidy, grant, or rebate:

The New Buyback Program for Photovoltaic Generation: Applies only to surplus electricity generated using PV power systems Purchase at a fixed price is guaranteed for 10 years from the start of the program.

Full Document Text

Japan’s Promotion Measures for Renewable Energy Introduction

(3) The New Buyback Program for Photovoltaic Generation

Applies only to surplus electricity generated using PV power systems
Purchase at a fixed price is guaranteed for 10 years from the start of the program.
[*The set price varies depending on the starting year. The initial price has been set to be ¥48/kWh for households (less than 10 kW)].
An all-participating system in which surcharges are collected from all electricity users
Launched on November 1, 2009

* The initial purchase price is set at ¥48/kWh for households (less than 10 kW) and ¥24/kWh for others.
In the case where private power generators are co-equipped, the prices are ¥39/kWh and ¥20/kWh, respectively.

(3) The New Buyback Program for PV Generation / Costs to electricity users

It is estimated that the monthly addition for a standard household will range between ¥30 and ¥100.

The result of estimation for an addition per kWh shows that an initial addition will be ¥0.1/kWh and a monthly addition for a standard household will be ¥30 - 100.

* The estimates below indicate the amount of the entire purchasing cost, and thus, avoidable cost and the amount equivalent to the cost incurred before the fare revision have not been deducted. Therefore, the amount of PV surcharge will actually be lower than the figures listed below.

		Initial Period	In 5-10 years
Total Purchase		Approx. ¥80–90 billion/year	Approx. ¥180–300 billion/year
Monthly addition per kWh		Approx. ¥0.10/kWh	Approx. ¥0.15–0.30/kWh
Monthly addition for a standard household * Electricity consumption: Approx. 3,600 (kWh/year)		Approx. ¥360/year	Approx. ¥540–1,080/year
Monthly addition for industry as a whole * Electricity consumption: Approx. 360 billion (kWh/year)		Approx. ¥36 billion/year	Approx. ¥54–108 billion/year
Of which, the amount borne by industries with a large demand	* Electricity consumption: Approx. 282 billion (kWh/year)	Approx. ¥28.2billion/year	Approx. ¥42.3–84.6 billion/year
	(e.g.) Machinery * Electricity consumption: Approx. 72 billion (kWh/year)	Approx. ¥7.2 billion/year	Approx. ¥10.8–21.6 billion/year
	(e.g.) Steel * Electricity consumption: Approx. 36 billion (kWh/year)	Approx. Approx. ¥3.6 billion/year	Approx. ¥5.4–10.8 billion/year
	(e.g.) Chemicals * Electricity consumption: Approx. 30 billion (kWh/year)	Approx. Approx. ¥3 billion/year	Approx. ¥4.5–9.0 billion/year
Of which amount borne by small- and medium-sized enterprises	(e.g.) Small restaurants * Electricity consumption: Approx. 8,400 (kWh/year)	Approx. ¥840/year	Approx. ¥1,260–2,520/year
	(e.g.) Small- and medium-sized factories * Electricity consumption: Approx. 0.3 million (kWh/year)	Approx. ¥30,000/year	Approx. ¥45,000–90,000/year

* The estimation for both standard households and industries with large demand is performed on the basis of the current consumption
* Compiled on the basis of Electricity Demand in FY 2008 (Confirmed Report) by the Federation of Electric Power Companies of Japan (April 30, 2009)