The Japanese government is taking steps to strengthen oversight of solar projects, aiming to promote their responsible and efficient development.
METI to End FIT/FIP Subsidies for "Mega Solar"
On 19 March 2026, the Japanese Ministry of Economy, Trade and Industry ("METI") announced that it will discontinue FIT/FIP support for commercial solar power plants (except for rooftop solar) from fiscal year 2027.1 While this applies regardless of whether a project qualifies as "mega," it highlights the government's move to tighten regulations on large-scale solar projects, which have been subject to significant public scrutiny.
METI will continue to support commercial rooftop solar and residential solar power plants through the FIT/FIP regime.
The Japanese Government's Mega Solar Countermeasure Package
The decision follows the Mega Solar Countermeasure Package2 adopted at the Inter-Ministerial Meeting on Large-Scale Solar Power Generation Projects3 held at the end of 2025. The meeting brought together various ministries, including METI, the Ministry of the Environment, and the Ministry of Agriculture, Forestry and Fisheries, and other relevant ministries, to discuss countermeasures addressing the social and environmental impacts of large-scale solar projects, promoting desirable projects while taking a strict approach to inappropriate ones.
The package consists of the following three pillars:
1. strengthening of legal regulations on inappropriate projects—covering directions for necessary amendments to relevant laws and regulations, including:
- review and enhancement of environmental impact assessments under the Environmental Impact Assessment Act and the Electricity Business Act;
- strengthening forest land development permit regulations under the Forest Act; and
- strengthening safety regulations under the Electricity Business Act;
2. strengthening collaboration with local community initiatives—strengthening collaboration between the national government and local authorities; and
3. prioritizing support for community-integrated projects—including:
- reviewing support under the FIT/FIP scheme for ground-mounted solar power from fiscal year 2027 onwards;
- strengthening the development and deployment of next-generation solar cells; and
- focusing support on rooftop and other installation types.
Future Insights
A number of additional regulations will also apply to solar projects:
- the Forestry Agency established an expert study group in January 2026 to examine revisions to the forest land development permit standards related to large-scale solar power generation.4 The amended Forest Act, scheduled to enter into force in April 2026, will also strengthen penalty regulations in connection with such permits; and
- on March 24, 2026, at a cabinet meeting, the government approved a bill to amend the Electricity Business Act,5 which is due to be submitted to the current session of the Diet. As included in the package, the amendment further extends and strengthens the pre-existing framework governing third-party verification and confirmation of safety.6
With additional regulatory updates anticipated going forward, it will be important to keep a close watch on these developments.
1 https://www.meti.go.jp/press/2025/03/20260319004/20260319004.html
2 https://www.cas.go.jp/jp/seisaku/megasolar/pdf/countermeasure.pdf
3 https://www.cas.go.jp/jp/seisaku/megasolar/index.html
4 https://www.rinya.maff.go.jp/j/tisan/tisan/con_4_6_1.html
5 https://www.meti.go.jp/press/2025/03/20260324006/20260324006.html
6 It should also be noted that, in order to ensure a stable supply of electricity and promote energy security in light of prevailing domestic and international circumstances, the amendment proposes a system that enables financing by public institutions to facilitate the development of large-scale power infrastructure, including large-scale transmission lines and large-scale power generation facilities. Furthermore, to ensure the proper conduct of retail electricity business, the proposed amendment would allow the registration to be revoked where a registered retail electricity supplier fails to commence its retail electricity business within one year from the date of registration or has suspended such business continuously for one year or more.
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