"What if our company goes bankrupt?" shouted an offiacial of a company seeking to generate electric power with solar photovoltaics at a meeting on Oct. 3 at which Kyushu Electric Power Co. explained its decision to suspend receiving applications for sale of electricity from renewable energy sources to the power firm.

Under a scheme known as feed-in tariffs (FIT) that the government instituted in 2011, power utilities are required to purchase at fixed prices electric power generated by other entities by using renewable energy sources. But the scheme has proved to be unworkable as Kyushu Electric's action was followed by Tohoku, Shikoku, Okinawa and Hokkaido Electric Power companies.

The utilities' actions have dealt a serious blow to entities planning to build solar power generating facilities and manufacturers of solar panels. Moreover, entities that have already entered into contract with the utilities for green power sales also fear that the deals might prove unworkable.