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March FY2022
Renewable Energy Purchase Prices, Surcharge Rate, and Other Details related to FIT and FIP Schemes from FY2022 Onward to Be Determined

Renewable Energy Purchase Prices, Surcharge Rate, and Other Details related to FIT and FIP Schemes from FY2022 Onward to Be Determined

March 25, 2022

The Ministry of Economy, Trade and Industry (METI) will determine the purchase prices, surcharge rate, and other details related to renewable energy in FIT and FIP schemes from FY2022 onward.

1. Purchase Prices for FY2022 Onward

Respecting the Procurement Price Calculation Committee's recommended purchase prices for FY2022 onward, METI will determine the prices as follows.

(1) Solar power generation

i. Solar power generation for homes and businesses (Ineligible for bids)

Power source Scale (For reference)
FY2021
FY2022
FY2023

Solar power generation
for homes Under 10 kW 19 yen 17 yen 16 yen

Solar power generation
for businesses From 10 to less
than 50 kW 12 yen 11 yen 10 yen

50 kW or more
Ineligible for bids 11 yen 10 yen 9.5 yen

Note: Regional utilization requirements for businesses generating solar power with self-consumption types (from 10 kW to under 50 kW) have been established through the FIT scheme since FY2020.

ii. Solar power generation for businesses (Eligible for bids)

Bids will determine the FY2022 purchase price. In FY2022, bidding will be possible at 1,000 kW or more with FIP certification and from 250 to under 1,000 kW with FIT certification. However, bids will be waived and the year's purchase price will be 10 yen for roof installations on existing buildings. Developers can bid up to four times in FY2022 with the maximum prices being 10.00 yen, 9.88 yen, 9.75 yen, and 9.63 yen, respectively.

(2) Wind power generation

i. Onshore wind power generation (Under 50 kW)

Power source Scale (For reference)
FY2021
FY2022
FY2023
FY2024

Onshore wind
power generation Less than 50 kW 17 yen 16 yen 15 yen 14 yen

Note: Regional utilization requirements will be established for self-consumption and regional integrated types through the FIT scheme starting in FY2023.

ii. Onshore wind power generation (50kW or more)

Bids will determine the FY2022 purchase price. Developers can bid once in FY2022 with the maximum price being 16.00 yen. If the bid capacity exceeds 1.7 GW, however, the developer will submit an additional bid within the fiscal year. The maximum price will be the weighted average contract price from the first bid in that same fiscal year or 15.00 yen, whichever is higher.

iii. Onshore wind power generation (Replacements)

Power source Scale (For reference)
FY2021
FY2022

Onshore wind power generation
(Replacements) Every scale 15 yen 14 yen

Note: Regional utilization requirements will be established for self-consumption and regional integrated types through the FIT scheme starting in FY2023.

iv. Offshore wind power generation (The Act on Promoting Utilization of Sea Areas in Development of Power Generation Facilities Using Maritime Renewable Energy Resources is inapplicable)

Power source Scale (For reference)
FY2021
FY2022
FY2023
FY2024

Bottom-mounted offshore
wind power generation Every scale 32 yen 29 yen Bidding
system -

Floating offshore wind
turbine power generation Every scale 36 yen 36 yen

(3) Geothermal power generation

Power source

Scale (For reference)
FY2021
FY2022
FY2023
FY2024

Geothermal power generation Less than 15,000 kW 40 yen 40 yen

15,000 kW or more 26 yen 26 yen

Geothermal power generation
(With all facilities updated) Less than 15,000 kW 30 yen 30 yen

15,000 kW or more 20 yen 20 yen

Geothermal power generation
(With original underground facilities in use) Less than 15,000 kW 19 yen 19 yen

15,000 kW or more 12 yen 12 yen

Note: Regional utilization requirements will be established for self-consumption and regional integrated types through the FIT scheme starting in FY2022.

(4) Small- and medium-sized hydroelectric power generation

Power source Scale (For reference)
FY2021
FY2022
FY2023
FY2024

Small- and medium-sized
hydroelectric power generation Under 200 kW 34 yen 34 yen

From 200 kW to
under 1,000 kW 29 yen 29 yen

From 1,000 kW to
under 5,000 kW 27 yen 27 yen -

From 5,000 kW to
under 30,000 kW 20 yen 20 yen 16 yen -

Small- and medium-sized
hydroelectric power generation Under 200 kW 25 yen 25 yen

From 200 kW to
under 1,000 kW 21 yen 21 yen

From 1,000 kW to
under 5,000 kW 15 yen 15 yen -

From 5,000 kW to
under 30,000 kW 12 yen 12 yen 9 yen -

Note: Regional utilization requirements will be established for self-consumption and regional integrated types through the FIT scheme starting in FY2022.

(5) Biomass power generation

i. Biomass power generation (Ineligible for bids)

Power source Scale (For reference)
FY2021
FY2022
FY2023

Biomass power generation
(General wood, etc.) Under 10,000kW 24 yen 24 yen

Biomass power generation
(Unused materials) Under 2,000kW 40 yen 40 yen

2,000 kW or more 32 yen 32 yen

Biomass power generation
(Construction material waste products) Every scale 13 yen 13 yen

Biomass power generation
(General waste products, other) Every scale 17 yen 17 yen

Biomass power generation
(Biogas from methane fermentation) Every scale 39 yen 39 yen 35 yen

Note: Regional utilization requirements will be established for self-consumption and regional integrated types through the FIT scheme in 2022 for biomass power generation under 10,000 kW and in 2023 for under 2,000 kW.

ii. Biomass power generation (over 10,000 kW) using general wood, etc. / Biomass liquid fuel (Every scale)

Bids will determine the FY2022 purchase price. The maximum price will not be published.
* The amounts in the above table are the unit price per kWh. In the FIT scheme, this plus tax equals the procurement price (aside from solar power generation under 10 kW). This is the FIP scheme's base price.

(Reference) FIT/FIP Schemes / Bid Eligibility Graphic

2. FY2022 Surcharge Rate

Based on the purchase prices in section 1, we determined that the FY2022 surcharge rate is 3.45 yen/kWh. Looking at an example of a consumer who uses 260 kWh/month as a guide, their monthly charge is 897 yen (+24 yen), and their annual charge is 10,764 yen (+288 yen).
Note: The FY2021 surcharge rate was 3.36 yen/kWh (example consumer's monthly charge: 873 yen; yearly charge: 10,476 yen)

The 2022 surcharge rate will be applicable on electricity charges from May 2022 to Apr. 2023 meter readings.

< Basis for calculating the surcharge rate >

i. Surcharge rate: 3.45 yen/kWh = Purchase cost: 4.2033 trillion yen - ii. Avoidable costs, etc.: 1.4609 trillion yen + Administrative expenses of the Organization for Cross-regional Coordination of Transmission Operators: 1.7 billion yen * ÷ iii. Amount of electricity sold: 794.3 billion kWh

Note: Includes system construction costs related to the FIP scheme and the decommissioning cost reserve system, arising from the Revised Act on Renewable Energy Special Measures going into effect (1 billion yen)

(Breakdown)

FY2021 assumptions FY2022 assumptions Key factors

i. Purchase cost 3.8434 trillion yen 4.2033 trillion yen

New renewable energy generation facilities that will start operations in FY2022
Costs to ensure adjustments can be made if there are forecasting errors of renewable energy

ii. Avoidable costs, etc 1.1448 trillion yen 1.4609 trillion yen

Estimating the unit prices of avoidable costs based on past actual market prices
Non-fossil fuel value trading revenue, etc.

iii. Amount of electricity sold 803.6 billion kWh 794.3 billion kWh

Estimates of electricity sales based on past actual electricity sales*

Note: The amount of electricity covered by the surcharge rates will be excluded from deductible expenses.

Division in Charge

New and Renewable Energy Division, Energy Efficiency and Renewable Energy Department, Agency for Natural Resources and Energy