Japan launches subsidy program to cut costs of renewable heat systems

The Japanese government has announced the launch of a subsidy program to support the adoption of renewable heat and industrial waste heat systems. The initiative aims to reduce costs by facilitating upgrades that enhance energy efficiency and decrease emissions.

The Ministry of the Environment in Japan has initiated the first round of proposals for the subsidy program, which is part of the fiscal 2024 supplementary budget. This program will provide financial support for the installation of renewable heat systems, waste heat recovery equipment in factories, energy-efficient enhancements for hot spring supply systems, and self-consumption-based renewable electricity systems, excluding PV. To be eligible for support, projects must meet specific cost criteria.

The Japan Environmental Technology Association (ETA) is overseeing the proposal submissions, which will be accepted from April 3 to May 8, 2025. Interested applicants are required to submit their proposals directly to the ETA before the deadline. More information, including eligibility requirements and application materials, can be found on the ETA’s official website.

Recent research conducted by Japanese and Swedish scholars suggests a link between higher solar feed-in tariffs (FITs) and increased capital expenditure (capex) in Japan’s solar projects. The study indicates that generous tariffs may reduce the incentive for developers to innovate or reduce costs, leading to inflated project expenses and potentially undermining long-term market competitiveness.