Feed-in-tariff costs for Japanese solar in 2025 set at JYP10 per kw/h

For fiscal year 2025, Japan’s feed-in tariff (FIT) price for electricity generated from solar energy has been set at JPY10 ($0.06) per kilowatt hour.

In recent years, solar energy has surpassed hydropower as the largest renewable energy source in Japan according to Statista. The nation’s solar generation capacity continues to grow, driven by government initiatives prioritising solar power investment. To this end, as Japan works to achieve carbon neutrality by 2050, the government of Prime Minister Shigeru Ishiba has focused on increasing the share of renewables and nuclear energy in its energy mix. Consequently, the share of renewables in electricity production has risen to over 20% in recent years.

A decade ago, in 2015, the Japanese government began reducing the FIT-based purchase price for electricity generated from solar energy. Simultaneously, the sales price of solar photovoltaic (PV) modules also declined, resulting in a long-term reduction in solar power costs. More cuts are predicted. The Ministry of Economy, Trade and Industry (METI) has projected that solar power will become less expensive than nuclear energy by 2030.