Solar power sales price to drop again

Japan will again cut the government-set price of solar power under the feed-in-tariff system, aiming to encourage businesses to generate electricity from other renewable resources.
     The feed-in-tariff program, introduced in July 2012, requires utilities to buy power generated from renewable sources from producers at fixed prices under long-term contracts.
     Solar power now accounts for roughly 90% of all renewable-energy equipment approved by the government. The Ministry of Economy, Trade and Industry wants to lower solar's price to ease this imbalance and to encourage the generation of geothermal and small- to

medium-scale hydropower -- the two areas that have lagged behind.
     A third-party expert panel working under METI will start discussing the price for fiscal 2015 in January. The rate will be lowered a third straight year and is seen coming in under 30 yen (25 cents) per kilowatt for the first time.
     The panel will separately consider whether to lower the price of surplus solar power sold by households to utilities. Households have small output capacity, limiting the utilities' cost burden in buying electricity from them, and are relatively disaster-resistant.
     Kyushu Electric Power and Tohoku Electric Power, two of the regional utilities that have suspended solar power purchases, will resume them next month.
(Nikkei)