Publication date: Nov 1, 2024 Japan to consolidate solar power projects before FIT system ends
Japan to Consolidate Solar Power Projects Before FIT System Ends
The Ministry of Economy, Trade and Industry (METI) has presented a draft policy for the government to certify operators who will be responsible for the consolidation of solar panel projects. The measure is to prevent a possible increase in withdrawals of solar power operators and equipment abandonment by consolidating projects before the end of the government’s Feed-in Tariff (FIT) system, scheduled for 2032 or later.
A new policy will be introduced to certify businesses as “Long-term Stable Qualified Photovoltaic Power Generation Businesses” (tentative name) on the condition that they have a track record of generating electricity above a certain level. The requirements for certification include holding the trust of local stakeholders and the expectation that the project will be implemented in a stable manner over the long term.
METI’s Plan for Facilitating Solar Project Restructuring
Specifically, METI will consider support measures for certified operators, such as providing information on companies wishing to sell their businesses in advance, starting in 2025. With these measures, the government aims to facilitate restructuring, including the acquisition of other companies’ facilities, to maintain renewable energy over the long term. In Japan, the FIT system has played a crucial role in promoting the installation of solar power since 2012.
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