The Subsidy Period Of Japanese Household Solar Energy Generation Is Approaching, Plan To Combine With Energy Storage Batteries Or Electric Vehicles

- Sep 05, 2019-

On November 1, 2009, Japan implemented the surplus power acquisition system (FIT) for generating electricity of household solar energy. The limit is 10 years. Ten years later, this year, only two quarters are left before the end of acquisition deadline. How to develop?

solar energy storage battery

                                                                     Rooftop Solar power generation

FIT help a lot in the expansion of renewable energy such as solar energy, After 10 years of a fixed-price acquisition, it is expected that the number of residential solar power generation will reach 530,000 in November and December this year within expiration. About 1.65 million by 2023, and total 6.7 million kW solar power generation will reach the acquisition deadline.


From the beginning of November 2019, the acquisition date will expire in order.


This is the chart of development trend of house solar power generation from FIT.

solar panel with battery price

There are various advantages of solar power generation, such as not emitting greenhouse gases, contributing to sustainable development, ensuring energy security etc., Generally, the lifespan of photovoltaic solar panels can reach 20-30 years, so it can generate electricity after 10-year acquisition period. it is completely feasible to develop as an independent power source after acquisition. But problem is that during the acquisition period, photovoltaic power generation is sold to the government-designated power company at 48 JPY/kWh. After the expiration, how can make the most of electricity generated by residential solar power, and the remaining electricity can be sold? Sell to whom?


Related Japanese people has given two suggestions:

The first suggestion, combine solar power generation with electric vehicles or energy storage batteries, consider it as power consumption of your home, and maximizes its own production and sales. Although the home electricity connected to power grid is also the surplus electricity before the acquisition expires, the electricity purchased by the power company at a higher price will often be passed on to the electricity bill of next year, so the electricity price will rise slightly in the next year. It turns out that the acquisition plan has been implemented for two years. After that, each household pays an average of 30 JPY to 100 JPY more per month.


Recently, the Japanese Cabinet Office’s survey on consumption trends found that consumer price confidence index presented a downward trend for three consecutive months as a result of price increasing of food and electricity. Based on this, it can be analyzed that, with the expiration of acquisition and increasing of electricity cost, the possibility of installing energy storage batteries in residential buildings will increase as the cost of batteries decreases rapidly. What’s more, the reality is that the Japanese government has introduced a series of subsidies for residential energy storage, which is nearly half of the retail price of residential energy storage batteries. According to relevant survey reports, by 2022, Japan will surpass Australia and Germany and be the third in the world in terms of energy storage battery deployment, which is enough to reflect Japan's ambitions for energy storage deployment.

home solar battery

                                                               Residential photovoltaic power generation

Another way is to sign contracts (relative free contract) and sell surplus power after each household negotiated with the retail appliance operator.


If the free trafficking of surplus electricity goes smoothly, it may continue to built the business model of the previous renewable energy business without a suitable system. However, the installer of residential solar power generation is both a supplier of electricity and an ordinary consumer. After the expiration of the acquisition, what kind of choices and countermeasures are available? It is difficult to collect a lot of information, and there is no ability to negotiate with enterprises.

solar power batteries for sale

                                                                     Home energy storage lithium battery


At present, the surplus power generated by household solar energy is basically purchased by large power company (the former general electric industry). The major power companies have announced new acquisition menus from April to June 2019. At the same time, from the point of promoting fair competition, the signing of the contract of a large power company will be canceled after the new acquisition menu is published after April 2019, so it is impossible to sign the contract before April. Looking at these trends of large power companies, other operators will also take specific action by signing up contract for surplus power recycle or storage battery and electric vehicles.


In short, the Japanese government hope that more and more solar power generation equipment will continue to be launched. Therefore, each family should consider the use of solar power generation and be able to make positive choices.