The Japanese government has set 2026 feed-in tariff (FIT) terms for solar below 250 kW, set the renewable energy levy at JPY 4.18 ($0.026)/kWh, and confirmed that feed-in premium (FIP) auctions for large-scale solar will end after 2026.
Japan will continue to support smaller solar installations under its FIT scheme while closing its auction-based FIP program for large-scale solar after fiscal year 2026, the Ministry of Economy, Trade and Industry (METI) said in an online statement this week.
For residential solar under 10 kW, the government has introduced a tiered initial investment support scheme, offering JPY 24/kWh for the first four years and JPY 8.3/kWh for years five through 10. Roof-mounted commercial solar of 10 kW or more receives JPY 19/kWh for the first five years and JPY 8.3/kWh for years six through 20. Both schemes were introduced in the second half of fiscal year 2025.
Ground-mounted commercial solar between 10 kW and 50 kW receives a FIT rate of JPY 9.6/kWh in fiscal 2026. From fiscal year 2027, ground-mounted commercial solar will be excluded from FIT and FIP support entirely.
For large-scale solar above 250 kW, FIP premiums are awarded through auction. METI has set four auction rounds for fiscal year 2026 with a ceiling price of JPY 9.6/kWh. From fiscal year 2027, no further auctions will be held and no FIP support will be available for this category. Japan’s fiscal year 2026 – which runs from Oct. 1, 2025, to Sept. 30, 2026 – represents the final year of auction-based support for utility-scale solar in Japan.
The renewable energy levy, paid by all electricity consumers to fund the FIT and FIP schemes, has been set at JPY 4.18/kWh for fiscal year 2026. A typical household consuming 400 kWh per month will pay JPY 1,672 per month and JPY 20,064 per year. The levy applies from the May 2026 meter reading through April 2027.
METI’s total estimated purchase costs under the schemes for fiscal 2026 are JPY 4,850.7 billion, marginally below the fiscal year 2025 estimate of JPY 4,854.0 billion. It said that avoidable costs are estimated at JPY 1,649.5 billion, down from JPY 1,790.6 billion in fiscal year 2025.
Japan’s most recent solar auction, its 27th, concluded earlier this month with 79 MW allocated across 11 projects at an average final price of JPY 4.61/kWh, against a ceiling price of JPY 8.68/kWh.
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