Tokyo Municipalities Subsidizing Households that Generate Extra Solar Electricity

Shibuya Ward and the city of Musashino, two municipalities in Tokyo, starting in April 2009, began an incentive program that pays households extra when they sell surplus electricity generated by their residential photovoltaic (PV) systems to the local utility company. Subsidies provided by these municipalities are 30 yen (U.S.$0.31) per kilowatt-hour (kWh) in Shibuya and 15 yen ($0.15) in Musashino. Surplus electricity generated by each household with a PV system is normally purchased by a utility company for 22 yen ($0.23) per kWh, on average. By tacking subsidies onto electricity prices paid by the power companies, each municipality intends to further promote the use of PV systems.

Although the national government and the Tokyo Metropolitan Government subsidize the cost of installing PV panels, the fact that it takes more than 30 years to recover the initial cost of two million yen ($20,619) is an obstacle to wider dissemination. Shibuya and Musashino are the first Japanese municipalities to provide incentives for sale of household-produced electricity.

In the case of Shibuya, the total price of 52 yen ($0.54) will be available by adding a subsidy of 30 yen to the regular price of 22 yen per kWh. The program is in effect for three years from fiscal 2009. When a three-kilowatt residential PV panel system is used and half of the electricity is sold, its depreciation period will be shortened to 17 to 19 years from the normal 32 years, including the subsidy for the installation cost. The subsidies are available to up to 100 houses in the ward.

Whereas in Musashino, the annual subsidy amounts to approximately 26,000 yen ($268), assuming that the same size of PV panel system is used and 60 percent of surplus electricity is sold to a utility company. The city adopted this incentive program as a model project and plans to review programs to promote the installation of PV systems.

Japanese Ministry (METI) to Subsidize Residential PV Installation (Related JFS article)
http://www.japanfs.org/en/pages/028740.html
Tokyo to Introduce Multiple Measures for Utilization of Solar Energy
http://www.japanfs.org/en/pages/028801.html
The Spread of Solar Power Generation in Japan No.70 (June 2008)
http://www.japanfs.org/en/mailmagazine/newsletter/pages/
027851.html

Posted: 2009/09/28 06:00:15 AM