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How Japan's feed-in tariff works for residential solar

A plain-language outline of the scheme, the application steps and what to check on official sites

Solar panels on a red tiled roof with a row of houses in the distance (illustrative photo)

Japan's feed-in tariff scheme for solar has been running since 2012, and its rules have changed several times, so a homeowner researching solar today will find a lot of outdated information online. This note outlines how the scheme works for small residential systems and where to check current figures. It is a general explanation, not advice about your case, and the official sources named at the end always take precedence.

What the tariff is

Under the FIT scheme, the power company buys electricity from a qualifying solar system at a rate per kilowatt-hour that the government sets for a fixed period. For residential systems under 10 kW, the purchase period is ten years from grid connection, and the rate that applies is the one for the year in which the system qualifies. Rates are reviewed by fiscal year, so a figure quoted last year may no longer apply.

For these small systems the arrangement is a surplus purchase: the company buys only what you do not use yourself. If your household consumes everything the panels produce, nothing is exported. The scheme therefore matters most to households that are out during the day. We do not publish purchase rates on this site, because they change and the official figure is the one that counts.

The applications involved

Two applications are normally involved when a new system is connected. One is the grid-connection application to the local power company, which covers the technical side of connecting safely. The other is the registration under the FIT scheme itself, which goes through the government's procedure. Both need system documents: panel and inverter specifications, a roof layout and the details of the connection point.

Processing times differ by power company and by season, so ask for the current estimate instead of relying on a figure from an article. Who prepares and submits the paperwork is something to settle in the written quote. The owner stays the applicant, and an installer can help prepare the documents; our quotes state what we do and what stays with you.

Subsidies are a separate matter

Apart from the national scheme, some prefectures and municipalities run their own subsidy programmes for solar systems or home batteries. Whether one exists, how much it pays, who may apply and when applications open differs by place and by year, and a programme can close early once its budget is used up. We do not list programmes or amounts here, because anything we printed could be out of date by the time you read it. Check the website of your prefecture and your city or town office, and tell us what you find so the quote can take it into account.

After the ten-year period

When the ten-year purchase period ends, the power company is no longer obliged to buy surplus electricity at the old rate. Some companies offer a purchase arrangement at a lower rate; others do not. Many owners at that point look at a battery to use more of their own output. Your own export data shows how much a battery would actually change, so it is worth reviewing the options before the end date, not after.

For current rules and rates, start with the Agency for Natural Resources and Energy (METI) and the website of your power company. What we do and do not do for you is set out in the FAQ.

Related reading

  1. Home battery storage: what to know before buying
  2. Choosing solar panels suited to Japan's climate
  3. Solar inverter lifespan and when to plan for replacement
  4. What happens during a solar site survey in Japan
  5. How often should you clean solar panels?
See also

Clean energy, thoughtfully installed

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