The government will start a new system from April 1st to reduce the additional burden paid by households to popularize renewable energy such as solar power.
A system called FIP aims to introduce market principles to large-scale power generation companies and reduce the burden on the people.
Electric power generated from renewable energy is required to be purchased at a fixed price by a major electric power company under a mechanism called the feed-in tariff (FIT).
However, the cost of purchasing is borne by households and businesses in addition to the electricity bill, and the amount has increased more than 15 times in 10 years, which has become a problem.
For this reason, the Ministry of Economy, Trade and Industry will introduce a new system called FIP from the new fiscal year on April 1.
The target is a large-scale power generation facility of 1000 kW or more, which will be newly constructed, which is called mega solar in solar power.
These facilities will no longer be purchased at a fixed price like FIT.
The market principle is introduced to power generation companies, and it is required to secure sales destinations for electric power by themselves.
On the other hand, a certain amount of subsidy is provided by the national government in response to price fluctuations in the electricity market, and consideration is given to prevent the management of businesses from deteriorating.
The Ministry of Economy, Trade and Industry intends to reduce the current system, which has a heavy burden on the people, in the future and expand the introduction of renewable energy through free competition.