Japan is considering reducing the incentives for developers of solar power projects by as much as 16 percent to reflect lower operating and maintenance costs.
The tariff for applications approved between April 1 and June 30 could be cut to 29 yen per kilowatt hour from the current rate of 32 yen under a proposal presented today by a panel in charge of reviewing the country’s renewable-energy incentives. The tariff would be cut again to 27 yen per kilowatt hour beginning in July, the panel recommended.
The lower tariff could cool investments in Japan’s booming solar market by making it less attractive for developers eager to lock in contracts at some of the highest rates in the world.
The above is an excerpt of Japan Panel Proposes Solar Tariff Cut of as Much as 16% on Costs by Chisaki Watanabe for Bloomberg. Image Credit: Lukema via Flickr.