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Japan Eyes End to Solar Farm Subsidies
15 Dec, 2025
Summary
- Japan may end feed-in subsidies for large solar farms by fiscal 2027.
- Concerns over ecosystem damage drive the proposed policy shift.
- Subsidies for household rooftop solar will continue.
Japan's government is contemplating an end to feed-in subsidies for new large-scale solar farms by fiscal 2027. Sources indicate this significant policy shift stems from growing concerns about the environmental impact of renewable energy infrastructure on local ecosystems and wildlife.
The move signals a departure from the decade-long promotion of solar power expansion through fixed-rate purchase schemes, initiated after the 2011 Fukushima nuclear disaster. While subsidies historically reduced development costs, their discontinuation could deter future investment in mega solar projects, which have faced criticism for damaging natural habitats.
Despite plans to eliminate support for commercial solar projects by year-end, the government intends to continue subsidizing household rooftop solar panels. This adjustment comes as solar power currently constitutes 9.9% of Japan's electricity generation, with a target to reach 23-29% by fiscal 2040.
