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Feed-in tariff for solar photovoltaic: The rise of Japan

Author

Listed:
  • Muhammad-Sukki, Firdaus
  • Abu-Bakar, Siti Hawa
  • Munir, Abu Bakar
  • Mohd Yasin, Siti Hajar
  • Ramirez-Iniguez, Roberto
  • McMeekin, Scott G.
  • Stewart, Brian G.
  • Sarmah, Nabin
  • Mallick, Tapas Kumar
  • Abdul Rahim, Ruzairi
  • Karim, Md Ershadul
  • Ahmad, Salman
  • Mat Tahar, Razman

Abstract

Japan started implementing a national Feed-In Tariff (FiT) mechanism on the 1st July 2012, which included specific payment tariffs for solar photovoltaic (PV) installations. This marks a new era in the renewable energy landscape in Japan. This paper aims at analysing the solar PV prospect in Japan, particularly in both residential and non-residential sectors. The paper presents, first, an overview of energy trends in Japan prior to the Fukushima event. This is followed by a short review of solar PV progress in the country, highlighting the major policies and programmes that have been implemented as well as the installations that have been carried out over the past two decades. Next, the financial impact of the new FiT scheme on consumers is evaluated. The financial analysis investigates the total profit, the average annual return on investment and the payback period. For a comparison purposes, a similar financial analysis is also conducted with selected countries around the world – namely Germany, Italy and the United Kingdom. The results from this analysis indicate that the new Japanese FiT rate generates a good profit, a moderate annual return on investment and an acceptable payback period, suggesting an increasing trend of solar PV uptake over the next years.

Suggested Citation

  • Muhammad-Sukki, Firdaus & Abu-Bakar, Siti Hawa & Munir, Abu Bakar & Mohd Yasin, Siti Hajar & Ramirez-Iniguez, Roberto & McMeekin, Scott G. & Stewart, Brian G. & Sarmah, Nabin & Mallick, Tapas Kumar & , 2014. "Feed-in tariff for solar photovoltaic: The rise of Japan," Renewable Energy, Elsevier, vol. 68(C), pages 636-643.
    • Handle: RePEc:eee:renene:v:68:y:2014:i:c:p:636-643
    DOI: 10.1016/j.renene.2014.03.012
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    References listed on IDEAS

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    1. Muhammad-Sukki, Firdaus & Ramirez-Iniguez, Roberto & Abu-Bakar, Siti Hawa & McMeekin, Scott G. & Stewart, Brian G., 2011. "An evaluation of the installation of solar photovoltaic in residential houses in Malaysia: Past, present, and future," Energy Policy, Elsevier, vol. 39(12), pages 7975-7987.
    2. Celik, Ali Naci & Muneer, Tariq & Clarke, Peter, 2009. "A review of installed solar photovoltaic and thermal collector capacities in relation to solar potential for the EU-15," Renewable Energy, Elsevier, vol. 34(3), pages 849-856.
    3. Huenteler, Joern & Schmidt, Tobias S. & Kanie, Norichika, 2012. "Japan's post-Fukushima challenge – implications from the German experience on renewable energy policy," Energy Policy, Elsevier, vol. 45(C), pages 6-11.
    4. Moe, Espen, 2012. "Vested interests, energy efficiency and renewables in Japan," Energy Policy, Elsevier, vol. 40(C), pages 260-273.
    5. Muhammad-Sukki, Firdaus & Ramirez-Iniguez, Roberto & Munir, Abu Bakar & Mohd Yasin, Siti Hajar & Abu-Bakar, Siti Hawa & McMeekin, Scott G. & Stewart, Brian G., 2013. "Revised feed-in tariff for solar photovoltaic in the United Kingdom: A cloudy future ahead?," Energy Policy, Elsevier, vol. 52(C), pages 832-838.
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