1. Photovoltaic Power Applications in Japan For FinSolar project Aalto University School of Business 17.2.2015 Kim Yukyeong

2. Retail electricity prices in Japan For Household (typeB, TEPCO various price plan) kWh monthly Base rate+ Electricity rate JPY/10A€/10AJPY/kWh€-ct/kWh < 120273219,8914,7 120-300273225,1918,6 > 300273229,1021,5 For Commercial (TEPCO) SeasonsJPY/kW€/kW+ Electricity rate Summer 1 63812,1 16,6512,3 Others 15,5511,5 For Industrial (TEPCO) Summer 1 732 (>500kW) 12,8 15,3411,3 Others14,3710,6 TEPCO; Tokyo Electric Power Company 1 JPY = 0.00739 €

3. Total capacity of PV & Generation of electricity from PV Total electricity generation capacity in 2013 Electricity generation in 2013 unitMW%TWh% PV13,6 GW5,5 %13,6 TWh1,3 % Renewables**42 TWh All technologies246 GW100 *1 088 TWh*100 *Total generated electricity v2013 from BP Statistical Review of World Energy, 6.2014 **BP Statistical Review of World Energy, Renewable Sections (excl hydropower), 6.2014 Total electricity consumption(demand); 979 TWh from annual report IEA-PVPS-2013 Japan

4. Renewables Resource in Japan FY2012 (4.2012-3.2013) Source Installed capacity MW Cumulative capacity MW Power generation GWh Ratio in renewable (%) Ratio to *total generation PV1 9757 2637 63517,1 %0,69 % Wind862 6424 83810,8 %0,44 % Geothermal05402 6095,8 %0,24 % Small hydro (upto10MW) 53 25617 40139,0 %1,58 % Biomass353 31212 18627,3 %1,11 % Total2 10117 01444 6701004,06 % Renewables Japan Status Report 2014, Executive Summary, by Institute for Sustainable Energy Policies(ISEP) July 2014. http://www.isep.or.jp/ *Total generated electricity in 2012: 1 101 TWh

5. FIT Annually installed PV capacity MW annual report IEA-PVPS-2013-japan

6. Direct support policy Feed-in TariffsFrom July 2012 based on the Renewable Energy Law Capital subsidiesSubsidy program for residential PV systems terminated in the end of FY 2013 Local governments implement their own subsidy programs Subsidy for eco lease business promotion project Renewable portfolio standards (RPS) Amended in connection with the start of FIT New and existing PV -systems are eligible for selling electricity Tax creditsResidential; reduction 10% of cost from income tax Non residential; tax reduction for green investments, 7% tax credits (depends on the company scale) Investment fund for PV Investment funds for large scale PV power plants by financial institutions Green fund projects, low-carbon in local communities Producer- consumers’ incentives Subsidy for measures for off grid Promoting zero-energy houses Banks activities- green mortgages Low interest loan Introduction of PV to their own buildings

7. Feed-in Tariffs program (7.2012- ) fixed price (JPY & €-ct/kWh) for 10(20)years Vuosi Fiscal year unit < 10 kW incl tax > 10 kW after(/before VAT) Years10y20y 2012 7.2012-3.2013 JPY/kWh42 40(/42) €-ct/kWh3130 2013 4.2013-3.2014 JPY/kWh3836(/37,8) €-ct/kWh2827 2014 4.2014-3.2015 JPY/kWh3732(/34,56) €-ct/kWh2724 1 JPY = 0.00739 € Consumption tax in Japan equivalent of VAT

8. PV modules shipments FY2011 4.2011-3.2012 FY2012 4.2012-3.2013 FY2013 4.2013-3.2014 FY2014 4.2014-9.2014 Total MW 2 685 5724 209 6518 625 377 4 574 594 (**6 960 605) Domestic1 404 1493 809 4518 545 7324 268 457 Overseas1 281 423400 20079 645306 137 Residential86 %49 %28 %24 % Non residential14 %51 %72 %76 % ( > 500 kW capacity) 4 %19 %34 %35 % Japan Photovoltaic Energy Association (JPEA), http://pvjapan.org/en/statistic/index.htmlhttp://pvjapan.org/en/statistic/index.html ** Data during 4-12.2014 (3Qs)

9. Links International Energy Agency (IEA) Photovoltaic Power Systems Programme (PVPS) http://www.iea-pvps.org/index.php?id=146http://www.iea-pvps.org/index.php?id=146 National survey reports Statistical Review of World Energy http://www.bp.com/en/global/corporate/about-bp/energy-economics/statistical-review-of- world-energy.html Japan Photovoltaic Energy Association, PV shipments statistics http://pvjapan.org/en/statistic/index.html Institute for Sustainable Energy Policies (ISEP) http://www.isep.or.jp/en/ Ministry of Economy, Trade and Industry (METI), Agency for Natural Resources and Energy (japanese) http://www.enecho.meti.go.jp/statistics/electric_power/ep002/results.html#headline2 Feed-in Tariffs Scheme for Renewable Energy by METI http://www.meti.go.jp/english/policy/energy_environment/renewable/pdf/summary201209.pdf