Japan plans new renewable energy tariffs for 2012

Japan wants its power sector to buy electricity from more renewable energy sources in a feed-in tariff incentive scheme starting April 2012.

The government is expected to submit related bills for the new scheme during the current parliament session, aiming to make electricity low-carbon and to support a clean-energy market.

Currently, Japan’s 10 power companies are required to pay 48 yen or US$0.60 per kilowatt hour for surplus solar electricity from house owners and 24 yen per kwh for the surplus from small businesses and are allowed to add on the extra costs to users evenly.

Below are some of the main points that differentiate the existing scheme effective in the business year starting in April, from the new scheme based on a set of proposals a government advisory panel approved on Friday.