The panel that sets Japan’s feed-in tariff (FiT) has proposed a cut of 16%, the country’s Ministry for Enterprise, Trade and Industry (METI) has said.

It has suggested the current rate of ¥32/kWh be cut to ¥29 from April to June and again to 27 from July onwards. METI must now approve the proposed changes.

PV Tech reported on the review of the FiT in October 2014 when it was also mooted that the certification process could also be changed. Previously, projects were accredited for a FiT rate when the project is approved but plans were under consideration to change this so that any given FiT was only locked in at the point of grid connection.

The current system had led some to believe that developers were holding off on completing approved projects so that they could procure equipment at lower prices but benefit from the higher FiT.

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