Energy trading company Power Ledger has completed a five-month trial with Japan’s second largest utility, KEPCO, proving its system can offer customers a viable alternative to the current feed in tariff (FIT) model.
Japan currently has 40 GW of installed solar capacity, however a drastic reduction in FIT for solar power is scheduled for October 2019.
The Asia-Pacific has a $27B solar market (without FIT to counter the high price of solar Japan) this is predicted to drop to $1.67B by 2022.
Under the current business model, Japan solar PV owners receive a lucrative FIT for energy exported back to the grid of around ¥40/kWh.
As of October, the first tranche of FIT customers who entered into this program run by Japan’s Ministry of Economy, Trade and Industry (METI) in 2009 will become ineligible to receive the FIT.
More than 500,000 FIT customers will be affected by this change and this number will continue to escalate per year by approximately 200,000 additional customers.
The Power Ledger platform enables solar owners to retain their faster payback options and help lessen the impact of the Japanese government’s new policy mechanisms.
The Japanese public has spent more than ¥10 trillion ($92.8B) since the tariff’s introduction in July 2012.
Applied on a larger scale, Japan energy users could have saved more than ¥2 trillion ($18.5B) in 2019 alone by using Power Ledger’s platform.
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KEPCO representative general manager Fumiaki Ishida said, “Although there are still many challenges like amendments of relevant laws for commercialization, Power Ledger’s product presents significant opportunities for prosumers to sell their excessive energy at more advantageous prices and for consumers to buy it at more affordable prices.”
Power Ledger managing director David Martin said the successful outcome was built on Power Ledger’s previous work in Australia, Thailand and the United States.