Japan rubber-stamps PV FIT cut

Japan’s government has given final approval to cuts in renewable support that will see the feed-in tariff (FIT) for solar generation fall by 10% from today.

An expert advisory panel had already recommended a FIT drop to ¥37.8 ($0.40) per kWh from ¥42 for solar over 20 years.

The country’s trade minister rubber-stamped the cut, while leaving existing FIT rates for other renewables unchanged, said Bloomberg.

Market observers believe the cut will do little to damage the momentum that has built up in the Japanese solar market since the support scheme was introduced in July 2012.

Demand for PV has surged in Japan on the back of the FIT – surpassing 1GW in the final quarter of 2012 – giving a boost both to foreign suppliers and domestic players.