May 31, 2019
We, the Alliance for Solar Power Entrepreneurs (ASPEn), express our
deep concern over the local bill, "Industrial Solar Panel Tax," being proposed by Mimasaka city in Okayama prefecture since it will be an obstacle against the spread of all renewable energy generation, let alone solar photovoltaic power.
The bill also goes largely against the trend to spread renewables in Japan and all over the world. Solar power in Japan today is becoming popular, under the national feed-in tariff (FIT) institution introduced in July 2012, in order to pass a society based on renewable energy on to the next generation as we pay the cost.
Should the local bill be passed and become an ordinance in Mimasaka, it will impose additional tax on the solar power plant operators who have been paying property taxes on the and, depreciable assets taxes on the generation equipment, and/or corporate enterprise taxes proportional to the power generation revenues, leading to reduce motivation for those who would invest in further solar power generation as a business.
Consequently, Mimasaka city will be left behind from the transition towards renewable energy society under way globally, and it is the future generations in Mimasaka, not us, who are to pay the price.
Meanwhile, the procurement price of the FIT is being cut in a step-by-step manner, and solar power in Japan is about to stand on its own as a major electricity source. We therefore need to support solar so that it can sustain by itself as a local electricity source, not increasing a burden by additional taxation.
As ASPEn, we are continuously collecting information regarding the solar panel bill and making progress to further promote solar power and its healthy development through discussions with related officials or authorities.