Solar electricity FIT price per kilowatt hour Japan FY 2014-2023

In the fiscal year 2023, the FIT price of electricity that was generated from solar energy in Japan was set at ten Japanese yen per kilowatt hour, reaching a decade-low.
The feed-in tariff (FIT) system is a national system under which the unit price of electricity is fixed by the country. It is designed to increase investments in renewable energy systems by providing price certainty and long-term contracts to renewable energy producers.

 Solar energy is the largest renewable energy source in Japan

In recent years, solar energy overtook hydropower as the largest renewable energy source in Japan. The generation capacity of solar energy continues to rise as the Japanese government made investments in solar power a priority. As the island nation strives to become carbon neutral by 2050, it aims to increase its share of renewables and nuclear power. Consequently, the share of renewables in electricity production has increased to over 20 percent in recent years.

 Solar energy prices keep decreasing

In 2015, the government started to cut the FIT-based purchase price of electricity generated from solar energy. Since the sales price of solar photovoltaic (PV) modules has decreased as well, this resulted in a long-term decline in solar power costs. The Ministry of Economy, Trade, and Industry (METI) estimated that solar power will become cheaper than nuclear power by 2030.