Impact of feed-in tariff policy on global photovoltaic business: Expected solar cell for reconstruction after Great East Japan Earthquake

Renewable energy is strongly expected after Great East Japan Earthquake. However, the cost of electricity produced by the renewable energy is higher than that of grid power, which is generated by fossil fuels. Thus, government policy is very effective to enhance the renewable energy. Feed-in tariff (FiT) policy, in which electricity generated by renewable energy is bought by the electric utilities at above market prices, is very effective to enhance the renewable energy. Germany and Spain have introduced the FiT to the renewable energy, especially photovoltaic (PV) energy and enhanced the PV business and installation. But, the FiT caused serious problems, such as increase of electricity price and recession of PV business. The impacts of FiT on European PV business were analyzed. In addition, Japan Diet passed the FiT in August 26, 2011 and it will become effective from July 1st, 2012. The FiT assessment committee has presented the FiT proposal in April, 2012. It almost accepted the industrial demand. Therefore, the FiT will expand Japanese domestic PV market and business. The renewable energy project in the disaster area has begun and will contribute to the electric power supply and the economic recovery by creating the solar cell industry.