Falling FIT Purchase Prices and Rising Construction Costs
First written in FY2016. 11 of 23 entries say "Worsened", first in FY2017-Q1. Latest entry: 2026-07-31.
Astmax moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2025: 5 of 14 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2026-H1RestatedAnnual report
「We are working to improve business profitability by shifting from the FIT model, which does not rely on the feed-in tariff scheme, to non-FIT or FIP models.」
In response to lower FIT rates, the company continues to pursue improved profitability through a shift to non-FIT or FIP models. - FY2025-H1MitigatedAnnual report
「We are working to improve business profitability by shifting from the FIT model to non-FIT or FIP models.」
In response to lower FIT rates and the regulatory environment, the company is pursuing improved profitability through a shift to non-FIT or FIP models. - FY2024MitigatedAnnual report
「We are also working to develop PPAs using non-FIT solar power generation facilities that do not rely on the FIT scheme.」
In response to lower FIT rates and difficulties securing projects, the company is pursuing PPAs using non-FIT solar power, project acquisition in the secondary market, and conversion to the FIP model. - FY2023-Q1WorsenedAnnual report
「The FIT rate for commercial solar power generation was ¥11 per kWh, excluding tax, in fiscal 2021 and ¥10 per kWh, excluding tax, in fiscal 2022. Facilities of 250 kW or more continued to be designated as subject to the bidding system.」
The FIT rate for commercial solar power fell from ¥11 per kWh in fiscal 2021 to ¥10 per kWh in fiscal 2022, further worsening the profitability environment for projects. - FY2022-Q3WorsenedAnnual report
「As measures related to amendments to the Renewable Energy Special Measures Act, the company indicated a lapse system requiring projects not yet in operation to have an operating start deadline, a market-linked FIP (Feed-in Premium) system to be introduced in fiscal 2022, and a system for accumulating disposal costs based on external reserves similar to withholding at source.」
In addition to lower FIT rates and the bidding system, regulatory factors such as the FIP system and the disposal cost reserve system were added, increasing the factors making the profitability and operating environment for renewable energy projects more demanding. - FY2022-Q2RestatedAnnual report
「Regarding the environment surrounding renewable energy, under the amended FIT Act, the FIT rate for commercial solar power generation was ¥12 per kWh, excluding tax, in fiscal 2020 and ¥11 per kWh, excluding tax, in fiscal 2021. Facilities of 250 kW or more were designated as subject to the bidding system.」
The company continues to describe the regulatory environment for solar power generation, including lower FIT rates and the application of the bidding system to facilities of 250 kW or more. - FY2022-Q1WorsenedAnnual report
「Regarding the environment surrounding renewable energy, under the amended FIT Act, the FIT rate for commercial solar power generation was ¥12 per kWh, excluding tax, in fiscal 2020 and ¥11 per kWh, excluding tax, in fiscal 2021. Facilities of 250 kW or more were designated as subject to the bidding system.」
The FIT rate for commercial solar power fell from ¥12 per kWh in fiscal 2020 to ¥11 per kWh in fiscal 2021, and bidding eligibility was expanded to facilities of 250 kW or more. The planned introduction of the FIP system in fiscal 2022 was also indicated, making the profitability and acquisition environment for projects more demanding. - FY2021-Q1WorsenedAnnual report
「Regarding the environment surrounding renewable energy, under the amended FIT Act, the solar FIT rate was ¥14 per kWh, excluding tax, in fiscal 2019 and ¥12 per kWh, excluding tax, in fiscal 2020. The bidding system was also expanded from facilities with output of 500 kW or more to facilities with output of 250 kW or more.」
The FIT rate fell from ¥14 per kWh in fiscal 2019 to ¥12 per kWh in fiscal 2020, and bidding eligibility was expanded from facilities of 500 kW or more to those of 250 kW or more. - FY2020-Q3RestatedAnnual report
「Under the amended FIT Act, the solar FIT rate was ¥14 per kWh, excluding tax, in fiscal 2019, and the bidding system was expanded from facilities with output of 2,000 kW or more to facilities with output of 500 kW or more.」
The company continues to describe the ¥14 per kWh FIT rate in fiscal 2019 and the expansion of bidding eligibility to projects of 500 kW or more as factors affecting the profitability and acquisition environment for solar power generation. - FY2020-Q2RestatedAnnual report
「The solar FIT rate was ¥14 per kWh, excluding tax, in fiscal 2019, and the bidding system was expanded from facilities with output of 2,000 kW or more to facilities with output of 500 kW or more.」
The company continues to describe the ¥14 per kWh FIT rate, the expansion of bidding eligibility to projects of 500 kW or more, and the requirement to set an operating start deadline for projects not yet in operation as factors affecting the profitability and acquisition environment for solar projects. - FY2019WorsenedAnnual report
「Regarding the environment surrounding renewable energy, the solar FIT rate was ¥18 per kWh, excluding tax, in fiscal 2018 and ¥14 per kWh, excluding tax, in fiscal 2019. For projects of 500 kW or more, the procurement price was to be determined through bidding.」
The FIT rate fell further from ¥18 per kWh to ¥14 per kWh in fiscal 2019, and the profitability and acquisition environment became more demanding because the bidding system applied to projects of 500 kW or more. - FY2019-Q3WorsenedAnnual report
「Regarding the environment surrounding renewable energy, the solar FIT rate was ¥18 per kWh, excluding tax, in the current fiscal year and ¥14 per kWh, excluding tax, in fiscal 2019. For projects of 500 kW or more, the procurement price was to be determined through bidding.」
The FIT rate fell further from ¥18 per kWh in the current fiscal year to ¥14 per kWh in fiscal 2019, and the application of a bidding system to projects of 500 kW or more made the profitability and acquisition environment more demanding. - FY2019-Q2RestatedAnnual report
「Regarding the environment surrounding renewable energy during the second quarter of the current consolidated fiscal year, the solar FIT rate was ¥18 per kWh, excluding tax, a significant decline from the ¥40 per kWh rate when FIT was introduced.」
The company continues to state that the solar FIT rate is ¥18 per kWh, excluding tax, showing the decline from the ¥40 per kWh rate at the start of FIT. - FY2019-Q1WorsenedAnnual report
「Regarding the environment surrounding renewable energy during the first quarter of the current consolidated fiscal year, the solar FIT rate was ¥18 per kWh, excluding tax, a significant decline from the ¥40 per kWh rate when FIT was introduced.」
The solar FIT rate fell from ¥21 to ¥18 per kWh, and the extent of the decline from the ¥40 per kWh rate at the start of FIT was also indicated. - FY2018-Q3WorsenedAnnual report
「Competition has intensified due to the enforcement of the amended FIT Act, the entry of competitors and a decline in high-quality projects, making project acquisition difficult. Nevertheless, we will continue working to acquire IDs for solar power facilities that have not yet started operations and projects in the secondary market, including through transfers, with the aim of generating profit for the period.」
In addition to lower FIT rates and regulatory changes, the entry of competitors and a decline in high-quality projects have intensified competition for project acquisition, making acquisition difficult. - FY2018-Q2WorsenedAnnual report
「For solar power generation, following the reduction in the FIT rate from ¥29 and ¥27 per kWh, excluding tax, in fiscal 2015 to ¥24 per kWh, excluding tax, in fiscal 2016, it was further reduced to ¥21 per kWh, excluding tax, in the current consolidated fiscal year. In addition, the amended FIT Act introduced a bidding system for extra-high-voltage projects of 2 MW or more and measures to prevent projects from remaining non-operational.」
The FIT rate fell further, from ¥24 to ¥21 per kWh, and bidding systems were introduced for extra-high-voltage projects of 2 MW or more, together with a system to prevent projects from remaining non-operational. The regulatory environment for the profitability and acquisition of new projects became more demanding. - FY2017WorsenedAnnual report
「For solar power generation, the FIT rate was further reduced from ¥29 and ¥27 per kWh, excluding tax, in fiscal 2015 to ¥24 per kWh, excluding tax, in the current consolidated fiscal year, and to ¥21 per kWh, excluding tax, in fiscal 2017. A bidding system will be introduced for extra-high-voltage projects.」
The FIT rate was expected to fall from ¥24 per kWh in the current consolidated fiscal year to ¥21 per kWh in fiscal 2017, and a bidding system was to be introduced for extra-high-voltage projects. - FY2017-Q3RestatedAnnual report
「For solar power generation, the FIT rate was further reduced from ¥29 and ¥27 per kWh, excluding tax, in fiscal 2015 to ¥24 per kWh, excluding tax, in the current consolidated fiscal year. Under the current FIT Act, accreditation for projects not yet in operation will, in principle, lapse if a grid connection agreement is not signed by 31 March 2017. In addition, the amended FIT Act is expected to introduce measures to prevent projects from remaining non-operational.」
The company continues to state the ¥24 per kWh FIT rate, the deadline for accreditation to lapse for projects not yet in operation, and measures under the amended FIT Act to prevent projects from remaining non-operational. - FY2017-Q1WorsenedAnnual report
「For solar power generation, the FIT rate was further reduced from ¥29 and ¥27 per kWh, excluding tax, in fiscal 2015 to ¥24 per kWh, excluding tax, in the current consolidated fiscal year.」
The solar FIT rate fell further, from ¥29 and ¥27 per kWh in fiscal 2015 to ¥24 per kWh, worsening the profitability environment for new projects. - FY2016MaterialisedAnnual report
「For solar power generation, the purchase price under the Renewable Energy Feed-in Tariff Scheme (FIT) was further reduced from ¥32 per kWh, excluding tax, in fiscal 2014 to ¥29 and ¥27 per kWh in the current consolidated fiscal year.」
The company states that labor shortages have kept power generation equipment construction costs high, while declining purchase prices have made it increasingly difficult to secure the expected yield on new projects.