Purchase of solar power accelerated

The government launched a new program Sunday under which power companies can increase the amount they pay for surplus electricity produced by solar power generation systems installed in homes, schools and hospitals.

Here comes the sun: Solar panels are installed on the roof of a private home in Setagaya Ward, Tokyo, in September. KYODO PHOTO

In the government's latest attempt to get more people and organizations to install solar panels, many utility firms will almost double payments to ¥48 for each kilowatt generated per hour by households and ¥24 by schools, hospitals and other facilities.

The electric companies will cover the rise in costs by collecting a monthly surcharge of around ¥30 from every household and organization using electricity. This will start in April.

The surcharge is expected to rise to ¥50 to ¥100 in the next five to 10 years and critics say the additional burden will weaken consumer sentiment and delay economic recovery.

Power companies already have their own purchase programs for surplus home-generated electricity, in which it is left up to them how much they pay for it.

The number of homes with solar power generation systems has been increasing due mainly to a government subsidy program reintroduced in January, according to the Ministry of Economy, Trade and Industry.

But some utility company officials say they are concerned the new purchase program, which will run for 10 years, could fail to catch on with the public.

Deputy Prime Minister Naoto Kan said Saturday the government is considering launching a program next fiscal year under which power companies would buy all electricity generated by solar power.

"There is a way to increase the number of solar panels without the government having to provide any money, and that is to buy the whole amount at a fixed price," said Kan, who doubles as state minister for national strategy.

"We're planning to implement it next fiscal year," he said.

Kan, however, did not disclose any details of the envisioned program. He only indicated it would be more beneficial to households than the new surplus purchase program.

A program to buy all of the electricity generated by solar power was mentioned in the Democratic Party of Japan's platform for the Aug. 30 election.

Prime Minister Yukio Hatoyama has pledged to cut carbon dioxide and other greenhouse gas emissions 25 percent from 1990 levels by 2020 on the condition that large economies such as China and India join a post-Kyoto framework being discussed to reduce such emissions.

But the industrial sector has reacted with caution, saying efforts to achieve the midterm reduction goal will eventually force companies to spend more on improving energy-efficiency.

The government and the DPJ are also considering allowing power companies to buy electricity generated using other renewable energy sources such as wind and geothermal heat.

Some experts say, however, that the government must urgently study measures to prevent such policies from harming low income households.