Japan extends deadline for FIT cuts until September 2019
Post date: 06/12/2018 - 20:54
The Japanese government has decided to relax the conditions for cutting solar power subsidies for projects that have not started operations, according to news agency »Reuters«. The Ministry of Economy, Trade and Industry (METI) in October had proposed that companies granted permits for solar projects between the fiscal years of 2012 and 2014 under the Feed-In-Tariffs (FIT) system submit applications by March 2019 to connect to the grid. »But the proposals had angered power producers and investors who say the cuts will undermine their profitability and violate earlier agreements,« says the article. METI said it would delay the deadline for submission of applications for at least 2 MW projects to the end of September. The deadline for start of operations was also delayed by six months to the end of September.
Companies that miss the deadline will see their price guarantees under the tariffs of 32 to 40 yen ($0.28 to $0.36) per kilowatt hour (kWh) cut to 21 yen per kWh. METI estimates that the subsidy cut could affect 23.5 GW of solar capacity. Data from the ministry shows 23 percent of the total capacity approved in the fiscal year 2012 is not operating, with 49 percent approved in 2013 and 59 percent approved in 2014 also not operating, says the news agency.