Japan’s solar developers would get 10 percent less for the power they feed to utilities under a recommendation a government panel made after taking into account a plunge in the cost of panels.
The committee of experts advising the Ministry of Economy, Trade and Industry today said the rate should be cut to 37.8 yen (39 cents) per kilowatt hour for 20 years for applications from April 1. The current rate is 42 yen. The government must endorse the proposal before it comes into force.
The cost of solar equipment has fallen so much that officials say incentives can be cut without squeezing development plans amid a push to diversify sources of energy after the nuclear meltdown in Fukushima. Even at the reduced rates, Japan’s support for solar is about three times the incentives offered in Germany and China, two countries that are among the biggest solar markets in the world.
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