Publication date: Jan 31, 2026
Japan Shifts FIT/FIP Support Away From New Ground-Mounted Solar
The Ministry of Economy, Trade and Industry’s (METI) Procurement Price Calculation Committee has proposed excluding newly installed ground-mounted solar projects of 10 kW or more from eligibility under the FIT (Feed-in-Tarrif) and FIP (Feed-in-Premium) schemes from FY2027.
The change is being proposed because:
- Despite inflation, costs for ground-mounted solar projects of 10 kW or more have continued to decline across all size categories, indicating that the sector is approaching economic self-sufficiency.
- Deployment of solar projects that do not rely on FIT/FIP support, such as PPA-based projects and self-consumption systems, has increased in recent years.
- Some ground-mounted solar projects have raised concerns for environmental protection, safety, and landscape impacts, prompting the government to strengthen regulations on large-scale (mega) solar developments.
While subsidies for newly installed ground-mounted solar projects will be phased out, support for existing FIT/FIP projects will continue. The committee has also clarified that transitions from FIT to FIP will remain permissible, encouraging existing FIT projects to move to FIP.
Shulman Commentary: The planned abolition of FIT/FIP support for new ground-mounted solar projects signals a clear shift in Japan’s solar policy away from mega-solar development and toward rooftop solar and next-generation technologies such as perovskite cells. This is in line with the government’s target for solar to reach a 29% share of the energy mix by FY2040. From FY2026, curtailment will be applied first to FIT projects, followed by FIP projects, increasing relative exposure for FIT assets and strengthening incentives for FIT-to-FIP conversion. These incentives are reinforced by the government’s decision to increase the FIP balancing cost subsidy by JPY 1, further improving the economics of operating under the FIP scheme. Taken together, these developments highlight the importance of market participants staying closely attuned to evolving policy and market rules, as they will increasingly influence project economics, curtailment exposure, and revenue stability across Japan’s solar sector.