Activities Support & Subsidy

Support & Subsidy

Subsidy Program for Residential PV systems

(The following points feature for the program in FY 2002)

Qualifications

Private housing

A person planning to install a PV power generation system(connecting to the grid with low-voltage distribution line and reverse power flow and its solar cell module's power is under 10 kW) in a private housing, who has electrical utility contract and satisfies the following requirements.

Installation works to start up within two months of the date of application receipt and attachment of reservation number by NEF
Completion of installation within three months for existing housings, within six months for newly-builts, or by March 10, 2003, whichever is the earliest.

Housing complex

A housing complex supplier, etc., who plans to install a PV power generation system for at least 5 housing units in a single housing complex site and is capable of installing the system by March 10, 2003, and who is able to apply for the program in lieu of persons interested in installation of such a system in the housing complex.

Collective application through local governments

Local governments eligible for the subsidy program are those that are implementing or planning to implement within the fiscal term its own subsidy program for residential-use PV systems. (Just only a mediation is acceptable even if the local government does not have such a subsidy program).

Mechanism

Application Period

Private housing & Housing complex

: Apr.17, 2002 - Jan.31, 2003

Collective application through local governments

: Apr.17, 2001 - Sep.30, 2002

Range & Value of Subsidy

Range

The PV power generation system qualifying for subsidy must meet technical specifications established by NEF and at the same time satisfy the following provisions.

PV power generation system with capacity of below 10 kW, connected to the low-voltage grid system allowing reverse power flow (to sell excess power to the local power utility) and to be installed on rooftop, etc., of the housing.
New system only - used products are not accepted.
The system installation work must be completed after the date of receipt of subsidy application.

The range of subsidy coverage of system cost is the following :
Costs pertaining to purchase, installation, and installation works of PV module, platform, junction box, DC switch, inverter, protective devices, output watthour meter, surplus power sales watthour meter, and wiring and wiring devices.

Subsidy Value

The value of the subsidy is depend on the maximum capacity of the solar battery module making up the system and it's 100,000 yen/kW. The supremum per housing is less than 10 kW.

Requirement

After two years of installation of the PV power generation system, the subsidized user will be required to report on system operation, etc., on a regular basis. The report is to consist of the followings.

Monthly electric output, electric output sold, and electricity purchased (every 6 months)
Description of system failure and down time (every 6 months)
Level of satisfaction in the system (user convenience, configuration, space, etc.) and change in daily living with system installation (change in energy conservation awareness) (yearly)

Voice from a Monitor

	All of our family realize benefit of the sun.
	Mr. Kenji Nakane Izumi city, Osaka prefecture

"Since I learned a photovoltaic power generation system in an article of a science magazine abroad in my college student days, I wished for the installation."

Mr. Nakane applied for the subsidy program for the residential PV systems and has started power generation in his newly built house since October 1995.

"From my boyhood, it is continuously said that oil is to be exhausted sooner or later. However, the power consumption has increased year by year. I believe that it is time to reconsider what is really necessary to our life and what is not."

Mr. Nakane has made a shift to save energy by the installation of heat insulating materials in the wall or application of a solar heater on the roof. As self-supplied power is a realization of his dream, he didn't hesitate to pay his share, a half of the installation cost , 2.6 million yen.

His wife answered "After we started the generation in my house, we became energy conscious. Now, children turn off the light when they leave a room spontaneously. We feel a blessing of gas and water." Mr. Nakane saids "In general, most of us feel that a PV system is not common. But in the near future, it is certain that a PV system will be common in our life. I hope that a large attention to a PV system accelerates its development and application."

Major Advantages of the "Collective Application through Local Governments"

Advantages for the Local Government

Enhancement of local government program in the area of environment.
(Establishment of local government leadership in promotion of PV power generation)

Program with solid backing and integrated with that of the national government can be publicized to local community residents. In addition, it contributes dramatically to enhancement of environmental protection measures, including prevention of global warming. It can be promoted as part of the community redevelopment effort and at the same time nationwide publicity of the local government's environmental actions.
National government consulting on the new subsidy program.
When a local government plans to organize its own subsidy program, consulting can be received from the Ministry of International Trade and Industry.

In addition to advantages described in (1) and (2), various incentives as "local government promoting new energy use" are being studied at present.

Advantages for Installers of PV Power Generation Systems

No need for advance reservation with the New Energy Foundation
Application of subsidy for private housing is made by the installer by obtaining reference materials from the New Energy Foundation and applying directly to the Foundation. If scheduled quota is granted to the local government, the installer needs only to receive the application number to apply for subsidy payment from NEF without following NEF's reservation procedure. (Attach certificate of local government)
Relaxation of application requirements
When an installer applies for system installation cost subsidy to a local government, requirements for private housing has been partially relaxed. For general application, installation work of residential PV system must be completed within three months (six months for newly-builts). However, for the collective application through local governments, installation work and application for subsidy payment are allowed to be made by March 10, 2000.

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