Japan will tighten regulations and halt financial support for large-scale solar power projects starting in fiscal year 2027, aiming to protect natural ecosystems, public safety, and landscape preservation. The decision, part of a restrictive policy package approved on Tuesday, aligns with Prime Minister Takaichi Sanae's stance on limiting large solar projects due to concerns over reliance on foreign-made panels—particularly from China—and potential environmental damage.

With offshore wind projects facing rising costs and developer withdrawals, the potential slowdown in solar development could further hinder Japan's renewable energy growth. Notably, Japan ranks as the world's fifth-largest carbon emitter.

An official from the Ministry of Economy, Trade, and Industry (METI) stated that the government plans to discontinue feed-in tariff (FIT) and feed-in premium (FIP) support for ground-mounted commercial solar projects from April 2027. Under these schemes, renewable energy producers either receive fixed electricity purchase prices or premiums above market rates. Details, including project size thresholds, will be finalized later.

Support for existing facilities and residential installations will continue, while funding for perovskite solar cell R&D—a next-generation technology pioneered in Japan—will expand. Another official from the Environment Ministry revealed plans to broaden environmental assessment requirements, potentially applying them to projects below 30 MW, which currently bypass national evaluations.

These discussions follow controversies over large-scale solar developments near Kushiro Shitsugen National Park in Hokkaido and other regions. Since September, METI and the Environment Ministry have led talks on strengthening regulations.