Starting in April 2020, new regulations concerning feed-in tariffs (FITs) came into effect in Japan. The new regulations primarily target the self-consumption requirements for photovoltaic (PV) systems ranging from 10 kW to 50 kW, as well as a new tax scheme.
Japan aims to promote photovoltaic (PV) installations by classifying renewable energy into two categories: competitive energy and locally consumed energy. Large-scale PV power plants are positioned as a competitive source of electricity and integrated into the feed-in tariff (FIP) scheme of the electricity market. Meanwhile, systems under 50 kilowatts—primarily small commercial PV systems and residential arrays connected to low-voltage networks—are classified as locally consumed energy for self-consumption and community use.
Photovoltaic systems with a power output between 10 kW and 50 kW must comply with two requirements of the new plan. First, the system must achieve a self-consumption ratio of at least 30%. Project owners need to submit a self-consumption plan when applying for feed-in tariff approval, as power output needs to be monitored during operation. The second requirement addresses the unforeseen event of grid outages; project owners must provide at least one external power outlet for power supply.
Agricultural photovoltaic (PV) systems typically range from 10 to 50 kilowatts and have no self-consumption requirements, as farms have negligible electricity needs. Nevertheless, agricultural PV systems must comply with outage operation requirements and other regulations set by Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF).
In Japan, land available for photovoltaic (PV) installations is limited, making "solar sharing" a promising application. According to the MAFF (Mainland Development Federation), solar sharing refers to PV arrays operating on farmland while agricultural activities continue, without disrupting agricultural operations. The MAFF issued a regulation on so-called solar sharing in 2013, clarifying the requirements for installing PV power generation on agricultural land. These rules allow for temporary dual use of farmland if the system meets several conditions; that is, the PV system can be temporarily removed to prioritize optimal sunlight for crops. The regulation also requires farmers to report harvest conditions annually, and crop yields should remain at least 80% of the yield before the PV system was installed.
According to Takeshi Magami of Chiba Eco Energy, a leading company in Japan's agricultural photovoltaic sector, if only 1% of Japan's farmland were used for photovoltaic power generation, Japan could install approximately 30 GW of agricultural PV capacity.
