Ever since Japan kicked off a system to encourage the use of renewable energy for electricity in July 2012, businesses, civic organizations and even local government bodies have been trying to break into the tightly held power market.

Under the so-called feed-in tariff system, utilities are required purchase any generated electricity derived from five types of renewable energy for a fixed price and a set time.

But the momentum seems to be slowing. Several potential power suppliers are dropping their bids after coming face to face with restrictions that make it difficult for them to link to the power grids run by the utilities, which are essentially monopolies.