Subsidy Program for Residential PV systems.

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Outline of the program Mechanism of the "Collective Application through Local Governments" Quota Voice from a monitor

Outline of the program

Photovoltaic energy has a large potential as an alternative energy to oil. However, its high installation cost has been a stumbling block for the growth of the PV market. In order to overcome the situation, MITI has launched a subsidy program for residential PV systems since fiscal 1994. Initially, a subsidy covered 50% of the cost and contributed to the cost reduction of PV system. The budget for FY1994 was 2 billion yen. In FY 1995, it was 3.3 billion yen, and in FY 1996, it was 4 billion yen. The subsidy covers PV modules, its peripheral equipment, distribution lines and an installation work.

In FY 1997, MITI enhanced the subsidy program for large number of PV installations and aimed at further cost reduction by an effect of mass production of PV systems.The budget is 11.1billion yen. And the subsidy was opend to an owner/developer of a housing complex.

In FY1998, collective application through local goverments was newly added and the budget reached 14.7 billion yen. And in FY1999, budget is 16 billion yen.

Features for the program in FY1998

�¡Qualifications

Private housing

A person planning to install a PV power generation system in a private housing (including housing used for both residential and commercial purposes and building used for residential purpose), who has electrical utility contract and satisfies the following requirements. (1) Installation works to start up within two months of the date of application receipt and attachment of reservation number by NEF (2) Completion of installation within three months for existing housings, within six months for newly-builts, or by March 10, 2000, 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, 2000, 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

A local government planning to apply for the subsidy program in lieu or persons interested in system installation in compliance with a subsidy program to promote system installations within the municipality. (Installation work to be completed by March 10, 2000.)

Application Period

Private housing & Housing complex : Apr.15 (Thu),1999 - Mar.10 (Fri),2000 Collective application through local governments : Apr.15 (Thu),1999 - Dec.31 (Fri),1999

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.
1. PV power generation system with capacity of below 10kW, 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.
2. New system only - used products are not accepted.
3. 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 system price per kW.
under 875,000 yen:(price of the system - 248,000 yen)/2 x 1.05
over 875,000 and under 950,000 yen: 329,200 yen
over 950,000 yen: 312,700 yen

Regular Reports

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.
(1) Monthly electric output, electric output sold, and electricity purchased (every 6 months)
(2) Description of system failure and down time (every 6 months)
(3) 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)

Subsidy program organizers are responsible for management of the systems installed in good faith, as well as for system life, regulation of system disposal, etc.

For inquiries regarding subsidy program for residential PV power generation systems, please contact : Photovoltaic Power Generation Department Development Promotion Center New Energy Foundation 6th floor, Shuwa Kioi-cho Park Bldg., 3-6 Kioi-cho, Chiyoda-ku, Tokyo 102-8555 FAX : 03-5275-9831URL: http://www.nef.or.jp e-mail: info@nef.or.jp