Government on the Right Track in Suspending Support for Mega Solar

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Japan has decided to abolish the government support system for large-scale solar power plants commonly referred to as "mega solar."

Currently, the system calls for purchasing solar energy at a price above the market price. However, the government will end subsidies for new solar panel installation projects from FY2027 onward.

Environment Minister Hirotaka Ishihara also intends to expand the number of mega solar projects that will require environmental impact assessments.

These moves reflect growing concerns over mega solar's impact on ecosystems and safety related to the construction of its plants. One major area of concern is in the Kushiro Wetlands area of ​​Hokkaido. 

Cases of trouble with local residents have occurred one after another. As a result, efforts are now being made to stop development that leads to environmental destruction.

This marks a shift in the renewable energy promotion strategy pursued by the government since the Great East Japan Earthquake. It would be counterproductive to harm the natural environment in which we actually live under the guise of protecting the global environment. Therefore, the government's approach is entirely appropriate. 

Getting to Mega Solar 

In 2012, the government of the former Democratic Party of Japan (DJP) introduced the Feed-in Tariff (FIT) scheme. Under it, electric power companies purchase electricity at a fixed price higher than the market price for a certain period. 

Then, from FY2022, a new Feed-in-Premium (FIP) market-linked incentives scheme was adopted. It allows power producers to sell electricity on the market and receive a premium on top of the market price.

However, Japan's installed solar power capacity per flatland area is now the highest among major countries. In fact, it is more than double that of second-place Germany. One reason for the increase in problems throughout Japan is the lack of suitable sites for mega solar power plants. 

Funding Solar Energy

Also, part of the cost of purchasing renewable energy is funded through a renewable energy surcharge. This is collected from electricity users, which is one of the reasons for the rise in prices.

The global community is demanding decarbonization of energy sources. However, if Japan continues to support mega solar power plants, it will only exacerbate these negative effects. 

Nevertheless, the government plans to continue providing support for the use of solar for rooftop installations and general household use. 

Many mega solar power plants use cheap solar panels made in China. However, we can expect to see the increasing adoption of thin, bendable next-generation "perovskite solar cells" for rooftop and home use. 

Perovskite solar cell technology originated in Japan. Increasing support for the diffusion of domestically produced panels would also contribute to the nation's economic security. 

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Author: Editorial Board, The Sankei Shimbun 

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