A Japanese government panel is said to be on its way to setting a feed-in tariff of ¥42 per kilowatt hour (approximately US$0.51), according to a Reuters report that in turn cited the Nikkei business daily. The new subsidy scheme is to come into play from July and is a response to the global disapproval of the country’s handling of the Fukushima nuclear crisis in March 2011.
The report said that industry insiders had been pressing for a rate of ¥42 per kilowatt hour that included tax. However, it looks likely that the rate will be as recommended but excluding tax. Although the FiT rates could indeed draw new investments in the country’s markets, the higher rates could mean that higher energy costs are passed on to consumers.