A panel advising Japan’s government on changes to the country’s solar feed-in tariff have recommended it be cut by 10% from the end of this month.
The cut would see Japan’s FiT slashed from its current 42 yen per kilowatt hour to 37.8 yen from April 1 this year.
The country’s generous FiT has driven rapid growth in Japan’s solar market, with sales of solar panels in the fourth quarter of 2012 surging by over 150%.
Because of the falling cost of solar equipment, a cut to Japan’s FiT had been widely expected for the new financial year.
Previous reports had speculated that the cut could be up to 12% but the committee advising Japan’s Ministry of Economy, Trade and Industry has suggested 10%. The cut will have to be approved by the Japanese government before it comes into effect.
Ben Chow, marketing director at Chinese PV manufacturer Chaori Solar, which is active in the Japanese solar market, said the cut would not have a significant effect on the attractiveness of Japan.
“The FiT on offer here is already much higher than other parts of the world,” he said.