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Disposal Cost of PV Facilities Expected to Be 5% of Capital Cost in Japan

2019/09/03 22:12
Shinichi Kato, Nikkei BP Intelligence Group, CleanTech Labo
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Restoration is given up after a disaster in some cases. (source: Nikkei BP)

Japan's Ministry of Economy, Trade and Industry (METI) had the fourth meeting of the "Working Group (WG) Concerning the Securement of Cost of Disposing of Solar Power Generation Facilities" and confirmed that the cost of disposing of solar power generation (PV) facilities is 5% of the capital cost and equivalent to the past calculations Aug 26, 2019.

In regard to 10kW and higher-output PV facilities, the Calculation Committee for Procurement Price, Etc based on the feed-in tariff (FIT) policy already took the disposal cost into consideration as "5% of the capital cost" in one of the items that determine a purchasing price.

Also, the Business Plan Certification System, which is operated along with the revised FIT policy, requires that the disposal cost be included in the revenue and expenditure plan. If most power producers save up for it, the necessity of discussing the securement of the disposal cost becomes small.

In reality, there is no system for checking the status of savings, and there are probably many business operators that do not book the cost. If this situation continues, it might cause the abandonment of facilities and illegal disposal. So, METI decided to make a system that ensures the securement of disposal cost.