Japan:

Japan Approves 16% Solar-Tariff Cut - Geothermal Remains Unchanged (Bloomberg)

(Courtesy CIA.gov)

Japan has approved a proposal to cut the incentive for solar power by as much as 16 percent as costs of operation and maintenance fell. However, the tariff for geothermal energy remains unchanged.

The tariff for applications approved from April 1 to June 30 will be lowered to 29 yen (24 cents) a kilowatt-hour from 32 yen as proposed last month by a panel in charge of reviewing the country’s renewable-energy incentives.

The tariff will be reduced again to 27 yen a kilowatt-hour beginning in July, the Ministry of Economy, Trade and Industry said in a statement Thursday. The rates are good for 20 years.

The reduced rates for solar projects reflect lower operating and maintenance costs for solar projects while the capacity factor, an indicator of how often a power generator runs for a specific time, has improved, according to a February document by the panel.

While the incentives boosted solar installations across the country, capacity for other renewables such as wind and geothermal hasn’t increased as much.

The ministry kept tariffs for other types of clean energy, including geothermal and wind, unchanged for next fiscal year, following recommendations by the panel.

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