The nation finalized an 11 percent cut to the incentive it offers to producers of solar power for the fiscal year starting April 1 to take account of lower system costs.
The rate for solar projects with 10 kilowatts of capacity or larger was reduced to ¥24 per kilowatt hour from a current tariff of ¥27, the Ministry of Economy, Trade and Industry said in a statement Friday. The solar rates are valid for 20 years.
The approved rates were based on proposals by a panel of experts last month for so-called feed-in tariffs. The incentives were introduced in July 2012 to diversify the country’s energy sources.
Japan will maintain the rates for other clean energy sources such as wind, biomass, geothermal and small hydro at current levels, according to the statement.
The rates are subject to review every year by the panel.