Photovoltaic Power Applicationsin Japan

For FinSolar projectAalto University School of Business

17.2.2015Kim Yukyeong

Retail electricity prices in JapanForHousehold(typeB, TEPCOvarious price plan)

kWh monthly Base rate + Electricity rate

JPY/10A €/10A JPY/kWh €-ct/kWh

< 120 273 2 19,89 14,7

120-300 273 2 25,19 18,6

> 300 273 2 29,10 21,5

For Commercial(TEPCO)

Seasons JPY/kW €/kW + Electricity rate

Summer 1 638 12,1 16,65 12,3

Others 15,55 11,5

For Industrial(TEPCO)

Summer 1 732(>500kW)

12,8 15,34 11,3

Others 14,37 10,6TEPCO; Tokyo Electric Power Company1 JPY = 0.00739 €

Total capacity of PV &Generation of electricity from PV

Total electricity generation capacity in 2013

Electricity generation in 2013

unit MW % TWh %

PV 13,6 GW 5,5 % 13,6 TWh 1,3 %

Renewables **42 TWh

All technologies 246 GW 100 *1 088 TWh *100

*Total generated electricity v2013 from BP Statistical Review of World Energy, 6.2014**BP Statistical Review of World Energy, Renewable Sections (excl hydropower), 6.2014Total electricity consumption(demand); 979 TWh from annual report IEA-PVPS-2013 Japan

Renewables Resource in Japan FY2012 (4.2012-3.2013)

SourceInstalledcapacity

MW

Cumulativecapacity

MW

Power generation

GWh

Ratio inrenewable

(%)

Ratio to *total

generation

PV 1 975 7 263 7 635 17,1 % 0,69 %

Wind 86 2 642 4 838 10,8 % 0,44 %

Geothermal 0 540 2 609 5,8 % 0,24 %

Small hydro (upto10MW) 5 3 256 17 401 39,0 % 1,58 %

Biomass 35 3 312 12 186 27,3 % 1,11 %

Total 2 101 17 014 44 670 100 4,06 %

Renewables Japan Status Report 2014, Executive Summary, by Institute for Sustainable Energy Policies(ISEP) July 2014. http://www.isep.or.jp/*Total generated electricity in 2012: 1 101 TWh

FIT

Annually installed PV capacity

MW

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

2000000

4000000

6000000

8000000

10000000

12000000

14000000

cumul annual

annual report IEA-PVPS-2013-japan

Direct support policy

Feed-in Tariffs From July 2012 based on the Renewable Energy Law

Capital subsidies Subsidy program for residential PV systems terminated in the end of FY 2013Local governments implement their own subsidy programsSubsidy for eco lease business promotion project

Renewable portfolio standards (RPS)

Amended in connection with the start of FITNew and existing PV -systems are eligible for selling electricity

Tax credits Residential; reduction 10% of cost from income taxNon residential; tax reduction for green investments, 7% tax credits (depends on the company scale)

Investment fund for PV

Investment funds for large scale PV power plants by financial institutionsGreen fund projects, low-carbon in local communities

Producer-consumers’ incentives

Subsidy for measures for off grid Promoting zero-energy houses

Banks activities-green mortgages

Low interest loanIntroduction of PV to their own buildings

Feed-in Tariffs program (7.2012- )

fixed price (JPY & €-ct/kWh) for 10(20)years

VuosiFiscal year unit < 10 kW

incl tax> 10 kW

after(/before VAT)

Years 10y 20y

20127.2012-3.2013

JPY/kWh 42 40(/42)

€-ct/kWh 31 30

20134.2013-3.2014

JPY/kWh 38 36(/37,8)

€-ct/kWh 28 27

20144.2014-3.2015

JPY/kWh 37 32(/34,56)

€-ct/kWh 27 24

1 JPY = 0.00739 €Consumption tax in Japan equivalent of VAT

PV modules shipments

FY20114.2011-3.2012

FY20124.2012-3.2013

FY20134.2013-3.2014

FY2014 4.2014-9.2014

TotalMW 2 685 572 4 209 651 8 625 377 4 574 594

(**6 960 605)

Domestic 1 404 149 3 809 451 8 545 732 4 268 457

Overseas 1 281 423 400 200 79 645 306 137

Residential 86 % 49 % 28 % 24 %

Non residential 14 % 51 % 72 % 76 %

( > 500 kW capacity) 4 % 19 % 34 % 35 %

Japan Photovoltaic Energy Association (JPEA), http://pvjapan.org/en/statistic/index.html** Data during 4-12.2014 (3Qs)

LinksInternational Energy Agency (IEA) Photovoltaic Power Systems Programme (PVPS)

http://www.iea-pvps.org/index.php?id=146 National survey reports

Statistical Review of World Energyhttp://www.bp.com/en/global/corporate/about-bp/energy-economics/statistical-review-of-world-energy.html

Japan Photovoltaic Energy Association, PV shipments statisticshttp://pvjapan.org/en/statistic/index.html

Institute for Sustainable Energy Policies (ISEP) http://www.isep.or.jp/en/

Ministry of Economy, Trade and Industry (METI), Agency for Natural Resources and Energy (japanese)http://www.enecho.meti.go.jp/statistics/electric_power/ep002/results.html#headline2

Feed-in Tariffs Scheme for Renewable Energy by METI http://www.meti.go.jp/english/policy/energy_environment/renewable/pdf/

summary201209.pdf