What is a Feed-in Tariff for Renewable Energy?

In July 2012, the “Feed-in Tariff (FIT) Scheme for Renewable Energy” was launched under the “Act on Special Measures concerning the Procurement of Renewable Electricity by Electric Utilities”.
The Feed-in Tariff Scheme for Renewable Energy obliges electric utilities to purchase electricity generated from solar, wind, hydro, geothermal, and biomass power generation for a certain period at a fixed price, with the aim of promoting and expanding renewable energy throughout society.
It also stipulates that consumers, such as individuals and companies that use electricity, bear some of the costs of operating the system in proportion to their usage in the form of a “levy”.

Reference Site

• Agency for Natural Resources and Energy understanding! Renewable Energy “Renewable Energy Feed-in Tariff Guidebook

Photovoltaic Purchase Program

The system you can choose depends on the installed capacity of your photovoltaic system.
If the capacity is less than 10 kW, only surplus buyback is available (except in the case of a roof rental business), and for 10 kW or more, either surplus or total buyback can be selected. In general, residential customers can choose surplus buyback, while industrial customers, such as factories and various types of businesses, can choose total buyback.

　

	Electricity sales method	Purchase period
surplus buyback program	Use generated power at home and sell surplus power not used.	10 years
Full buyout system	Sell all electricity generated	20 years

Under the surplus buyback program, the amount of electricity generated by a photovoltaic system minus the electricity used by the household is eligible for purchase.
On the other hand, under the feed-in tariff system, electricity used is paid for as usual, and all electricity generated is subject to purchase.

Photovoltaic Capacity Classification

Residential photovoltaic power generation systems below 10kW and industrial photovoltaic power generation systems between 10kW and 50kW are classified as “low voltage” according to the technical standards for electrical equipment, while those above 50kW and below 2MW are classified as “high voltage” and those above 2MW as “extra high voltage".

	Surplus buyback program	Excess buyback program or total buyback program
Equipment capacity	Less than 10kW	More than 10kW to less than 50kW	More than 50 kW to less than 2 MW	2MW or more
Classification (based on technical standards for electrical equipment)	Low voltage	Low voltage	High voltage	Extra high voltage
Voltage to be connected to the grid	600V or less		More than 600V to less than 7000V	More than 7000V