The costs of solar PV are correlated with the cumulative amount of installed PV, which is recognized as a learning effect. Therefore, the impact of cumulative installed capacity on costs in Japan needs to be considered. As in Grafström and Lindman , the learning curve model can incorporate FITs as a policy effect.
An example of the impact on solar PV costs in Japan can be seen by comparing projects that began operation in 2022 but were approved under different FIT rates. Most solar PV projects that started operation in 2022 were qualified in 2013, as shown in Fig. 2, with a FIT of 36 JPY/kWh. The modeled impact of this tariff on the LCOE is 5.76 JPY/kWh.
In the 2000s, Japan''s support for solar PV deployments came in the form of economic incentives, investment subsidies, and Renewable Portfolio Standard (RPS). The RPS was introduced based on the new national renewable energy target set by the METI in 2001 .
Japan is also one of the most expensive countries in the world, with high labor and construction costs that likely also impact the capital expenditures (CAPEX) of solar PV. Another reason is that the topography may increase the competition for suitable land, increasing the cost of development. A third reason may be the generous FIT.
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