Eighteen months after the introduction of a system that obliges power companies to buy electricity generated from renewable energy sources at fixed prices, Japan's solar power generation market has been showing aspects of "solar bubbles."
While the cause is a large number of companies entering the business-seeking a windfall from a system that guarantees high sales prices-the ultimate cost of this problematic situation will be shouldered by ordinary people throughout Japan, via their electricity bills.
Introduced by the government in July 2012 to accelerate the adoption of renewable energy, the current system guarantees a set price to companies that use solar power, wind power and other renewable energy resources to generate electric power.
Under the system, existing power companies are obliged to purchase electricity generated from the renewable resources at fixed prices. The purchase prices are decided every year by the Economy, Trade and Industry Ministry.
Source: Japan News
