The renewable power promotion surcharge collected to fund Japan’s feed-in-tariff (FIT) and feed-in-premium (FIP) schemes will be set at 3.98 yen per kWh for power metered between May 2025 and April 2026, METI announced on March 21, 2025. The levy marks a 14% increase from the current fiscal year’s 3.49 yen per kWh, which applies to power metered through April 2025.
METI recalculates the surcharge, collected from power consumers by retailers, every year based on the expected cost of new renewable power plants, balancing power, wholesale market prices, and expected power demand. The fee is uniform across all TSO areas and applicable to all power procured through the grid with the exception of self-wheeling. Power generated on-site, including through on-site PPAs, is exempt.
The renewable power promotion surcharge was first introduced in FY2012, when it was set at 0.22 yen per kWh. From then on, it has steadily increased.
It has been at over 3 yen per kWh since FY2021 with the exception of FY2023, when it dropped to 1.40 yen per kWh. The sharp decrease from 3.45 yen per kWh in FY2022 was caused by an increase in fossil fuel prices due to the war in Ukraine breaking out, which narrowed the cost gap between conventional and renewable generation.
