Japan May Cut Solar Feed-in-Tariff

Japan may cut the rate that utilities pay for surplus solar power supplied by households by 12.5 percent in the year starting April, the Nikkei reported, without saying where it got the information.

The Ministry of Economy, Trade and Industry plans to lower the feed-in tariff to 42 yen (51 cents) per kilowatt, the newspaper said. The current rate is 48 yen per kilowatt.

Japan introduced the feed-in tariff in November 2009 to encourage use of clean energy and help cut the country’s carbon emissions. The tariff will be reduced because the cost of solar panels has fallen, the Nikkei said.

The ministry will make a final decision by mid-February, according to the Nikkei.

SOURCE: http://www.bloomberg.com/news/2011-01-25/japan-may-cut-tariff-for-residential-solar-power-nikkei-says.html