Japan boosts commercial solar capacity target

Part of incentive program for clean energy.

Japan has approved 19GW of commercial solar or non-residential solar applications by the end of the 2012 fiscal year. It also approved a total 21 GW of clean energy projects. The approved projects also include residential solar, wind and biomass.

Japan is projected to add the most solar capacity in the world this year, boosted by generous tariff rates for clean energy.

Japan added 2.1 GW of clean energy capacity (mostly solar) in the fiscal year ended March 31, to a base of about 20 GW, said the Ministry of Economy, Trade and Industry In the two months to May 31, Japan added another 1.3 GW.

In March, applications for non-residential solar such as utility-scale power plants and panels on factory rooftops jumped to 7,669 MW as developers rushed to file before the incentives were cut from April. That compared with applications worth 5.3 GW in February and 1.9 GW in January, according to the ministry.

Beginning April 1, the solar tariff payable by utilities was reduced to US$0.39 per kilowatt hour for 20 years from US$0.43 per kilowatt hour, reflecting lower equipment and construction costs.
Clean energy producers need approval from both the trade ministry and local utilities to qualify for the incentives.