Feed-in tariff program and its impact on PV market in Japan

Abstract

The annual PV installed capacity in Japan in 2012 is expected to be approximately 1.7 GW, achieving a significant growth from 1.3 GW in 2011, whereas cumulative installed capacity at the end of 2012 reached 6.6 GW. The installed capacity increased in 2012 in Japan thanks to a steady growth of the residential PV market and a rapid increase in installation of non-residential PV systems supported by the new Feed-in Tariff (FIT) program. In July 2012, new FIT program was started and more than 12 GW of PV systems are approved by the program as of the end of February 2012. The new FIT program contributes the growth of utility scale application and commercial applications and significantly change the market segments of Japanese PV market in which residential PV systems accounted for more than 80% in 2012. It is assumed that FIT also drive price down of PV systems because return of the investment is important for the investors. It is also observed that many companies entered into the Japanese PV market. This paper will describe the overview of the FIT program in Japan and its impact to the PV market and discuss technical and no-technical issues observed after implementation of the FIT program so far.