Japan launches subsidy program to cut costs of renewable heat systems

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Japan's Ministry of the Environment said on its website that it has launched the first call for proposals under its subsidy program to promote cost reduction in renewable heat utilization and waste heat recovery systems.

The program, which is part of the fiscal 2024 supplementary budget, supports the installation of renewable heat systems and factory waste heat recovery equipment. It also targets energy-efficient upgrades to hot spring supply systems and self-consumption-based renewable electricity systems, excluding PV. Projects must meet specific cost requirements to qualify for support.

The Japan Environmental Technology Association (ETA) is managing the call for proposals and will accept submissions from April 3 to May 8, 2025. Applicants must submit their proposals directly to the ETA by the deadline.

The ministry said that additional details, including eligibility criteria and application materials, are available on the ETA’s official website.

Earlier this month, Japanese and Swedish researchers said there is a correlation between higher solar feed-in tariffs (FITs) and increased capital expenditure (capex) in Japan’s solar projects. The study suggests that generous tariffs led to less incentive for developers to cut costs or innovate, inflating project expenses and undermining long-term market competitiveness.

Japan's New Energy and Industrial Technology Development Organization (NEDO) also recently launched a five-year R&D program to accelerate solar innovation, with a focus on high-efficiency cells, site-specific systems, PV module recycling, and long-term power stability. The fiscal 2025 call for proposals is open to companies, universities, and research teams through May 21.

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