The Total Primary Energy Supply Outlook prepared by the Advisory Committee for Energy (an advisory body of MITI) was announced in June 1998. In the Outlook, the target for photovoltaic (PV) system introduction was settled to be 5 000 MW by FY2010. The Law for New Energy Promotion Introduction was enacted in 1997 and defined the fundamental framework of the Government, local governments, energy users, energy suppliers and PV system manufacturers.PV System Dissemination Projects were enhanced, and new promotion projects for PV system were established.
As regards new projects in FY2000, two programmes were initiated: "Technology development to deploy PV system" aiming at promotion of PV system; and "Support for local activities to introduce new energy" aiming at introduction of new energy and renewable energy at regional and local level through NGO activities.
- Residential PV System Dissemination Programme
"Residential PV System Dissemination Programme", the latter of "Residential PV System Monitor Programme", was initiated in April FY1997. It aimed to enlarge further the scale of PV promotion, and to subsidize the PV installation cost for individuals on the condition that they perceive the significance of PV and provide the operation data of their PV system. The subsidy is given three categories:- an individual who is going to install PV system to his own house
- ready-built house supplier of housing development complex and
- local public organization who is going to introduce PV system to public house.
Residential PV systems have been installed to 6 352 houses, 24,1 MW in FY1998, 5 654 houses, 19,5 MW in FY1997, to 1 986 houses, 7,5 MW in FY1996, to 1 065 houses, 3,9 MW in FY1995 and to 539 houses, 1,9 MW in FY1994. 17 396 houses were accepted in FY1999, and 8 034 houses in the first half of FY2000, 10 873 houses in the second half, totalled 18 907 houses were accepted in FY2000. - Regional New Energy Introduction Project
This project aims at accelerating new energy introduction by supporting the regional projects that local governments established for new energy. Eligibles for subsidy are local public organizations who are going to introduce and promote PV, wind power, solar heat, differential temperature energy, natural gas-cogeneration, fuel cell, wastes generation, use of waste heat, production of wastes fuel, clean energy car, energy saving measurements. PV system is subsidized to 150 kW output and over. Half of system installation cost is subsidized. 16 systems in total were subsidized in FY1998, and 4 systems out of them were PV systems. Total capacity installed was 500 kW. 37 systems in total were subsidized in FY1999, and 19 systems out of them were PV systems. Total capacity installed was 1 539 kW. - Subsidy Programme for New Energy Industrialists
This programme aims at accelerating new energy introduction by supporting the industrial entrepreneurs who set about introducing new energy, such as PV, wind power, solar heat, differential temperature energy, natural gas cogeneration, fuel cell, wastes generation, use of waste heat, production of wastes fuel, from a viewpoint of energy security and global environmental protection. Eligibles for guaranteed debt or subsidy are private industrialists who set about new energy business. A third of system installation cost is subsidized and guaranteed debt is 90% of a debt. 18 systems in total were subsidized in FY1998 and one system out of them was PV system with 116 kW. 32 systems in total were subsidized in FY1999 and one system out of them was PV system with 100 kW.
Trial PV installations to road traffic facilities, especially of expressways, have been gone on with as before. Under "Guideline for Planning Environmentally-Friendly Government Facilities (Green Government Office Building)", construction of green government office buildings with PV system have been promoted. Furthermore, the Ministry developed "New Water and Sewage Technology 5-years Project" and are encouraging in installing PV systems to water and sewage facilities.
The Ministry initiates "Environmentally-Friendly Facilities Provision Project" for the purpose of environmental protection in community and are promoting introduction of PV systems to post offices.
The Ministry continues "Eco-school promotion Pilot Model Project" in partnership with MITI and is promoting introduction of PV systems to elementary and junior high schools in Japan.
120 kW PV system was installed at Narita International Airport in 1999 under "Eco-airport Plan" oriented environmental protection. The Ministry is planning to use PV systems under "Beacon Provision Project" and "Coastal Environmental maintenance Project".
The Ministry is promoting project of CO2 emission reduction measures by use of natural energy under "Basic Guideline for Promotion Measures to Arrest Global Warming" settled in FY1986. In addition, Government established "Law for Green Purchase", and decides to replace commodities procured by Government to environmentally-friendly products. As PV system is included in the products, introduction of PV systems to national facilities is expected.
As the movements to grapple positively with environmental issues are spreading, there is an increase in some local governments and municipals to plan and implement the introduction of PV systems and develop their own plan under MITI's Regional New Energy Introduction Vision. Some local governments and municipals also provide their own additional subsidy to the public financing and their number is increasing year by year. Promotional supports to PV systems are enhanced at local governments and municipals level.
Electric power companies continue the introduction of PV systems to their own facilities, and the net metering system with buy-back contracts for surplus PV electricity at the same rate as selling. The capacity by buy-back contract totalled 35 488 000 kWh at the end of March in 2000.
Ten electric power companies in Japan established "Green Power Fund" in October 2000 aiming at introducing and promoting PV systems and wind power systems. Electric power companies bill additional charge as a contribution of 500 JPY/share/month to their supporters among their customers, and contribute the same endowment as the amount of their supporters' contribution. The fund is used for installation of PV systems and wind power systems.
Some financing institutes, such as banks provide preferential financing at low interest rate with introduction of residential PV system for private use.
PV cell production had continued to hover around the low level since 1992, but got out of the level in 1996 and then has been expanding and growing. The production of PV cell in Japan is increasingly expanding from 50 MW level in 1998 to 80 MW level in 1999. It will be considered as the background of the above mentioned circumstances that the continuation of "Residential PV System Dissemination Programme" by MITI, the promotion of "PV Field Test Project" and the focus on sales of " house with PV system as standard specification" by housing manufacturers with approval of PV as building materials by the Ministry on Construction have paid a role in leading PV market and served as strong driving force to increase PV production.
The initial market development for PV systems has increasingly made progress, in the market sector of private houses, public facilities, industrial facilities and commercial buildings by financial support to PV systems of MITI. PV cell manufacturers commercialize thin type modules, lightweight modules, triangle modules, lighting type modules, coloured modules, flexible modules roofing integrated modules, wall material integrated modules, which correspond to user's needs to improve design and function. Especially housing manufacturers are enhancing sales of the houses with PV system as standard specification using these modules. The market range of 3-5 kW residential PV systems is expanding to the annual market scale of 10-20 thousand systems. Also the introduction of PV systems by local governments and private enterprises are increasing, and standardization of 10-100 kW PV systems for industrial use is developing. Local governments have installed PV systems mainly to schools, governmental offices, welfare facilities, hospitals, public halls. And private enterprises have applied PV systems to rooftops and roofs of head office buildings, business offices, factories and warehouse. Some private enterprises are planning to introduce systematically to restraints, railway stations, service stations, etc. Besides, off-grid non-domestic PV systems without governmental support are actively utilized as commercial power supply sources for telecommunication, traffic sign, remote measurement, ventilating fan, lighting and the like.