Shulman Advisory

METI Increases Support for Roof Based Solar Panels

Publication date: Feb 14, 2025

METI Increases Support for Roof Based Solar Panels

The Ministry of Economy, Trade and Industry (METI) has announced a new FIT (Feed-in Tariff) procurement price and FIP (Feed-in-Premium) base price for FY2025 and beyond. Under METI’s new plan, the investment support for installing solar panels on the roofs of factories and residences will become more generous. Starting in October 2025, the support price will increase by 1.6 times for the first five years for commercial solar power generation and four years for residential generation.

The investment support for roof-mounted commercial solar installations will increase to 19 yen/kWh for the initial five years, compared to 11.5 yen/kWh in FY2025. After the initial support period ends, the amount will be reduced to 8.3 yen/kWh in the sixth and later years of the 20-year support period.

METI’s new investment support plan increases incentives for rooftop solar installations, boosting commercial and residential adoption with higher initial support prices starting October 2025.

New Pricing Scheme and Policy Objectives

For residential installations, the initial four-year support price will increase from 15 yen/kWh to 24 yen/kWh in FY2025. For the fifth to tenth year of the ten-year support period, the price will drop to 8.3 yen/kWh, the same as the price for commercial generation.

The new scheme will be effective for 1.5 years from October 2025 through FY2026, with no decision yet made for FY2027 onwards. Its objective is to increase the initial support price, shorten the investment payback period, and increase the willingness to install roof-mounted solar power.

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