FIT(Feed-in Tariff) for Renewable Energy

About FIT for renewable energy

FIT(Feed-in Tariff) is the lawenacted on July 1, 2012 for the purpose that the power companies shall be obliged to purchase power generated by renewable energy (solar, wind, hydraulic, geothermal and biomass power) for a limited period and at a fixed price. The expenses borne by the power companies is reimbursed with subsidy distributed proportionally based on the consumed power. Japanese nation shall bear the expenses as a part of electric bills.


In order to accelerate intensive usage of renewable energy, it was discussed that during 3 years from effective date of the law, the special consideration must be given to profitability of renewable energy power suppliers when tariff is determined. Therefore it should be advantageous to develop power business from the primary stage.

Green Investment Tax Break:

In order to accelerate earlier introduction of power generation facilities based on renewable energy, a taxation system called "Taxation System for Environment-related Investment Promotion (Green Investment Tax Break)" to selectively assist investment to renewable energy facilities (Green Investment) was established in June 2012 with applicable period till March 31, 2015.

For 3 years from fiscal year of 2012, because of immediate depreciation (100% of acquired amount) being possible at first year for FIT approved facilities, the facility owner's financial burden at time of construction and during operational period of the facility owner by construction will be reduced together with exemption of fixed asset tax(for first 3 years).