ID :
10790
Wed, 06/25/2008 - 14:22
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Panel seeks subsidies to promote wider use of solar power

TOKYO, June 25 (Kyodo) - An advisory panel to the industry minister recommended Tuesday that the government reintroduce subsidies to encourage households to adopt solar power generation as part of efforts to fight global warming.

The Ministry of Economy, Trade and Industry panel aims to halve the installment costs of solar power generation systems -- about 2.3 million yen per household -- in three to five years. Running costs for the system are negligible.

METI plans to request allocations for the proposed subsidies in the state budget for fiscal 2009. The ministry will also call for tax breaks to make it easier for households to adopt such systems, a METI official said.

The recommendation to encourage the use of solar power and other renewable energy sources follows Prime Minister Yasuo Fukuda's announcement of Japan's new climate change initiative on June 9.

In the initiative dubbed the ''Fukuda Vision,'' the premier set the goal of increasing the use of solar power generation in Japan by 10 times from current levels by 2020 and 40 times by 2030.

Fukuda said more than 70 percent of newly built homes will have to employ solar power generation systems if the goal is to be met.

''It is necessary that the government adopt drastic measures again to support'' the promotion of solar power generation, the panel said in a report.

The number of households installing solar power generation systems has dropped sharply since the government ended a subsidy program in fiscal 2005, according to the report.

In fiscal 2005, the government extended 60,000 yen to 70,000 yen in subsidies to each household.

Households account for 80 percent of solar battery use in Japan.

The panel also called for increased tie-ups between solar power battery makers and home builders to widen the use of solar power generation in homes at lower cost, the report said.

Meanwhile, Environment Minister Ichiro Kamoshita said earlier Tuesday that his ministry will set up a forum for the state, prefectural governments and major cities to study market-driven steps to reduce greenhouse gas emissions.

The ministry plans to launch the Japan Carbon Action Platform in mid-July with the first meeting of participating parties, a ministry official said.

Kamoshita said he hopes the initiative will involve companies and other private entities in the future.

JCAP participants will exchange information and explore cooperation in the promotion of carbon-capping measures such as cap-and-trade and carbon offsetting.

In carbon offsetting, companies and individuals finance wind generation, tree planting and other eco-friendly programs to offset their emissions of carbon dioxide and other greenhouse gases thought in part to cause global warming.

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