Publication date: March 29, 2024
Renewable Energy Surcharge Is on the Rise Again
When the Feed-in-Tariff (FIT) was introduced in Japan in 2012 to promote more renewable energy generation, the government also implemented the renewable energy surcharge. Electric utilities collect the surcharge as compensation for purchasing from renewable energy generators, adding to electricity consumers’ costs. METI determines the rate of the surcharge for every fiscal year.
On March 19, METI announced that the renewable energy surcharge for FY2024 will be JPY3.49 per kilo-watt hour — the highest level since it was introduced in 2012. Since then, the surcharge had been on the rise until it reached JPY3.45 in 2022. In 2023, it dipped to JPY1.40 as the war in Ukraine pushed up hydrocarbon prices, making renewables relatively cheaper. METI’s announcement this year suggests that the surcharge is back on an upward trajectory.
In the same announcement, METI published the FIT/FIP rates for FY2024. Some of the notable changes from last year are:
- Ground-mounted commercial solar energy over 50kW declined to JPY9.2 from JPY9.5 in 2023
- Onshore wind energy under 50kW declined to JPY14 from JPY15 in 2023
- The FIT price for replacing end-of-life onshore wind projects declined to JPY12 from JPY13 in 2023
________________________________________________________________________________________
