Support measures for introduction of PV system in Japan

The PV market in Japan moved into the run-up period toward GW country in terms of annual introduction capacity with policy and measures to disseminate PV systems. The installed capacity of 2009 increased to 483 MW, more than double figure of the previous year (225 MW). It is expected that the newly installed capacity will reach about 950 MW in 2010. This significant growth is mainly driven by 2 key financial incentives; the residential PV system subsidy program that the Ministry of Economy, Trade and Industry (METI) restarted in January 2009 and the buyback program of surplus PV power (so-called the net export feed-in tariff) implemented in November 2009 in which surplus PV power is purchase by the electric utilities at 48 Yen/kWh for residential PV systems, twice as much as the current sales price of electricity. In addition to the growth of the market, several changes of the residential PV market have been observed; reduction of PV system price, increase of average installed capacity and the change of distribution chain with new entrants. While the growth of installed capacity is not significant in comparison with the residential PV market, new activities by electric utilities or private companies have become notable in the market for non-residential PV applications such as PV system for public, industrial and commercial facilities. This paper discusses the recent trends of the PV policy and market in Japan focusing on the changes after implementation of the key incentives. The prospects of the PV market will be also presented.