Feed-in tariff for solar photovoltaic: the rise of Japan

Firdaus Muhammad-Sukki, Siti Hawa Abu-Bakar, Abu Bakar Munir, Siti Hajar Mohd Yasin, Roberto Ramirez-Iniguez, Scott G. McMeekin, Brian G. Stewart, Nabin Sarmah, Tapas Kumar Mallick, Ruzairi Abdul Rahim, Md Ershadul Karim, Salman Ahmad, Razman Mat Tahar

Research output: Contribution to journalArticle

40 Citations (Scopus)

Abstract

Japan started implementing a national Feed-In Tariff (FiT) mechanism on the 1st July 2012, which included specific payment tariffs for solar photovoltaic (PV) installations. This marks a new era in the renewable energy landscape in Japan. This paper aims at analysing the solar PV prospect in Japan, particularly in both residential and non-residential sectors. The paper presents, first, an overview of energy trends in Japan prior to the Fukushima event. This is followed by a short review of solar PV progress in the country, highlighting the major policies and programmes that have been implemented as well as the installations that have been carried out over the past two decades. Next, the financial impact of the new FiT scheme on consumers is evaluated. The financial analysis investigates the total profit, the average annual return on investment and the payback period. For a comparison purposes, a similar financial analysis is also conducted with selected countries around the world - namely Germany, Italy and the United Kingdom. The results from this analysis indicate that the new Japanese FiT rate generates a good profit, a moderate annual return on investment and an acceptable payback period, suggesting an increasing trend of solar PV uptake over the next years.

LanguageEnglish
Pages636-643
Number of pages8
JournalRenewable Energy
Volume68
Early online date22 Mar 2014
DOIs
Publication statusPublished - 2014

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Keywords

  • feed-in tariff
  • financial analysis
  • photovoltaic
  • solar energy

Cite this

Muhammad-Sukki, F., Abu-Bakar, S. H., Munir, A. B., Mohd Yasin, S. H., Ramirez-Iniguez, R., McMeekin, S. G., ... Mat Tahar, R. (2014). Feed-in tariff for solar photovoltaic: the rise of Japan. Renewable Energy, 68, 636-643. https://doi.org/10.1016/j.renene.2014.03.012
Muhammad-Sukki, Firdaus ; Abu-Bakar, Siti Hawa ; Munir, Abu Bakar ; Mohd Yasin, Siti Hajar ; Ramirez-Iniguez, Roberto ; McMeekin, Scott G. ; Stewart, Brian G. ; Sarmah, Nabin ; Mallick, Tapas Kumar ; Abdul Rahim, Ruzairi ; Karim, Md Ershadul ; Ahmad, Salman ; Mat Tahar, Razman. / Feed-in tariff for solar photovoltaic : the rise of Japan. In: Renewable Energy. 2014 ; Vol. 68. pp. 636-643.
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abstract = "Japan started implementing a national Feed-In Tariff (FiT) mechanism on the 1st July 2012, which included specific payment tariffs for solar photovoltaic (PV) installations. This marks a new era in the renewable energy landscape in Japan. This paper aims at analysing the solar PV prospect in Japan, particularly in both residential and non-residential sectors. The paper presents, first, an overview of energy trends in Japan prior to the Fukushima event. This is followed by a short review of solar PV progress in the country, highlighting the major policies and programmes that have been implemented as well as the installations that have been carried out over the past two decades. Next, the financial impact of the new FiT scheme on consumers is evaluated. The financial analysis investigates the total profit, the average annual return on investment and the payback period. For a comparison purposes, a similar financial analysis is also conducted with selected countries around the world - namely Germany, Italy and the United Kingdom. The results from this analysis indicate that the new Japanese FiT rate generates a good profit, a moderate annual return on investment and an acceptable payback period, suggesting an increasing trend of solar PV uptake over the next years.",
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Muhammad-Sukki, F, Abu-Bakar, SH, Munir, AB, Mohd Yasin, SH, Ramirez-Iniguez, R, McMeekin, SG, Stewart, BG, Sarmah, N, Mallick, TK, Abdul Rahim, R, Karim, ME, Ahmad, S & Mat Tahar, R 2014, 'Feed-in tariff for solar photovoltaic: the rise of Japan' Renewable Energy, vol. 68, pp. 636-643. https://doi.org/10.1016/j.renene.2014.03.012

Feed-in tariff for solar photovoltaic : the rise of Japan. / Muhammad-Sukki, Firdaus; Abu-Bakar, Siti Hawa; Munir, Abu Bakar; Mohd Yasin, Siti Hajar; Ramirez-Iniguez, Roberto; McMeekin, Scott G.; Stewart, Brian G.; Sarmah, Nabin; Mallick, Tapas Kumar; Abdul Rahim, Ruzairi; Karim, Md Ershadul; Ahmad, Salman; Mat Tahar, Razman.

In: Renewable Energy, Vol. 68, 2014, p. 636-643.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Feed-in tariff for solar photovoltaic

T2 - Renewable Energy

AU - Muhammad-Sukki, Firdaus

AU - Abu-Bakar, Siti Hawa

AU - Munir, Abu Bakar

AU - Mohd Yasin, Siti Hajar

AU - Ramirez-Iniguez, Roberto

AU - McMeekin, Scott G.

AU - Stewart, Brian G.

AU - Sarmah, Nabin

AU - Mallick, Tapas Kumar

AU - Abdul Rahim, Ruzairi

AU - Karim, Md Ershadul

AU - Ahmad, Salman

AU - Mat Tahar, Razman

PY - 2014

Y1 - 2014

N2 - Japan started implementing a national Feed-In Tariff (FiT) mechanism on the 1st July 2012, which included specific payment tariffs for solar photovoltaic (PV) installations. This marks a new era in the renewable energy landscape in Japan. This paper aims at analysing the solar PV prospect in Japan, particularly in both residential and non-residential sectors. The paper presents, first, an overview of energy trends in Japan prior to the Fukushima event. This is followed by a short review of solar PV progress in the country, highlighting the major policies and programmes that have been implemented as well as the installations that have been carried out over the past two decades. Next, the financial impact of the new FiT scheme on consumers is evaluated. The financial analysis investigates the total profit, the average annual return on investment and the payback period. For a comparison purposes, a similar financial analysis is also conducted with selected countries around the world - namely Germany, Italy and the United Kingdom. The results from this analysis indicate that the new Japanese FiT rate generates a good profit, a moderate annual return on investment and an acceptable payback period, suggesting an increasing trend of solar PV uptake over the next years.

AB - Japan started implementing a national Feed-In Tariff (FiT) mechanism on the 1st July 2012, which included specific payment tariffs for solar photovoltaic (PV) installations. This marks a new era in the renewable energy landscape in Japan. This paper aims at analysing the solar PV prospect in Japan, particularly in both residential and non-residential sectors. The paper presents, first, an overview of energy trends in Japan prior to the Fukushima event. This is followed by a short review of solar PV progress in the country, highlighting the major policies and programmes that have been implemented as well as the installations that have been carried out over the past two decades. Next, the financial impact of the new FiT scheme on consumers is evaluated. The financial analysis investigates the total profit, the average annual return on investment and the payback period. For a comparison purposes, a similar financial analysis is also conducted with selected countries around the world - namely Germany, Italy and the United Kingdom. The results from this analysis indicate that the new Japanese FiT rate generates a good profit, a moderate annual return on investment and an acceptable payback period, suggesting an increasing trend of solar PV uptake over the next years.

KW - feed-in tariff

KW - financial analysis

KW - photovoltaic

KW - solar energy

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UR - http://www.sciencedirect.com/science/journal/09601481

U2 - 10.1016/j.renene.2014.03.012

DO - 10.1016/j.renene.2014.03.012

M3 - Article

VL - 68

SP - 636

EP - 643

JO - Renewable Energy

JF - Renewable Energy

SN - 0960-1481

ER -

Muhammad-Sukki F, Abu-Bakar SH, Munir AB, Mohd Yasin SH, Ramirez-Iniguez R, McMeekin SG et al. Feed-in tariff for solar photovoltaic: the rise of Japan. Renewable Energy. 2014;68:636-643. https://doi.org/10.1016/j.renene.2014.03.012