On Oct. 4, the Ministry of Economy, Trade and Industry proposed lowering the cost of nonresidential solar power generation to 7 yen per kilowatt hour, which is about one-third of the current cost, by the year 2030 under the feed-in tariff scheme for renewable energy. Wind power will drop by about 40% to 8 or 9 yen per kWh [by 2030]. By setting these targets, METI aims to encourage utilities operators to cut costs. This in turn will result in the spread of renewable energy.
The proposed targets were submitted to a METI panel of experts. Within the year, the panel will release the results of its discussions on feed-in tariff purchase prices for the next few years and the bid system for solar power generation for commercial use.
The feed-in tariff scheme was launched in July 2012. Purchase prices used in the scheme are calculated based on generation costs. A surcharge is then added to electricity rates. METI is aiming to reduce the burden on electricity users.