7 minute read | October.22.2026
日本語: Japan Renewables Alert 73 (日本語)
In this alert, we report on some recent updates on regulatory reforms implemented under the “Measures Package for Large-Scale Solar Power Generation Projects (Mega Solar)” announced during the new Takaichi administration in December 2025.
On December 23, 2025, the new Takaichi administration announced the “Measures Package for Large-Scale Solar Power Generation Projects (Mega Solar)” at a ministerial council meeting, setting out reductions in support for, and stronger regulation of, solar power plants in order to ensure renewable projects to maintain coexistence with local communities. While the measures are wide-ranging, this alert focuses on: (1) the lowering of the size thresholds for environmental impact assessments under the Environmental Impact Assessment Act (national EIA), and (2) the end of new FIT/FIP certifications for ground-mounted solar.
From April 1, 2027, the national EIA size thresholds applicable to projects involving the construction for installation or modification of solar power plants will be lowered.
On July 23, 2026, a cabinet order (Cabinet Order No. 230 of 2026) amending the Enforcement Order of the Environmental Impact Assessment Act to implement this change was promulgated (effective April 1, 2027). The threshold for Class 1 projects will be lowered from 40 MW to 20 MW, and the threshold for Class 2 projects, which are subject to the screening procedure, will be lowered from 30 MW to 15 MW.
In connection with this amendment to the national EIA thresholds for solar power plants, several local governments are also moving to lower the size thresholds for environmental impact assessments under their local ordinances (local EIA).
For example, Tochigi Prefecture presented a proposed amendment to the Enforcement Rule of the Environmental Impact Assessment Ordinance at an expert meeting held on July 16, 2026 that would roughly halve the local EIA size thresholds. The Prefectural Environmental Council approved on September 7, 2026. Under the current rules, the thresholds applicable to the installation of solar power plants are: (i) a site area of 50 ha or more, or a forest clearance area of 20 ha or more for ordinary areas, (ii) a site area of 15 ha or more for consideration areas, and (iii) a site area of 10 ha or more for special consideration areas. The prefecture plans to lower these to: (i) a site area of 25 ha or more or a forest clearance area of 10 ha or more for ordinary areas, (ii) a site area of 7.5 ha or more for consideration areas, and (iii) a site area of 5 ha or more for special consideration areas. The prefecture aims to amend the Enforcement Rule following a public comment procedure and bring it into effect on April 1, 2027.
In Mie Prefecture, the construction of solar power plants has not, until now, been directly subject to local EIA. Only projects involving land development above a certain size (in principle 20 ha or more, or 10 ha or more in special areas; for Anthe simplified EIA, in principle 10 ha or more, or 5 ha or more in special areas) were covered as “development of residential and other land.” In light of recent circumstances, the prefecture will amend the Enforcement Rule of its Environmental Impact Assessment Ordinance to make the construction for installation or modification of solar power plants directly subject to local EIA, and to effectively lower the size thresholds. As a result, solar power plant construction that does not involve new land development (such as on former golf courses) and smaller solar power plants will also be subject to the local EIA (10 ha or more regardless of whether special areas are involved; for the simplified EIA, in principle 5 ha or more, and 1 ha or more in forest areas). The Prefectural Environmental Council approved the amendment on August 3, 2026. The rule to amend the Enforcement Rule was promulgated on October 2, 2026 (see also the prefectural gazette; to be effective as of April 1, 2027).
Approximately 45 local governments subject solar power projects to local EIA, and developments in local EIA in each region should also be monitored.
At the 110th meeting of the Procurement Price Calculation Committee held on January 7, 2026, ANRE (Agency for Natural Resources and Energy, under METI) presented its policy of discontinuing FIT/FIP support for ground-mounted commercial solar from FY2027 onward. With the Committee’s endorsement, the Committee’s “Opinion on Procurement Prices, etc. for FY2026 and Beyond” compiled on February 5, 2026 (the “Committee Opinion”) set out the policy that no support will be provided for ground-mounted commercial solar from FY2027 onward in principle. Related amendments to the REA Enforcement Rule have also been made and will take effect on April 1, 2027 (METI Ordinance No. 29 of 2026).
It should be noted that, even from FY2027 onward, existing FIT commercial solar projects may still transition to FIP (Committee Opinion, p. 99). Separately, rooftop solar will continue to be eligible for new FIT/FIP support from FY2027 onward.
However, the Committee Opinion indicated that certain types of non-rooftop solar that can be expected to achieve coexistence with local communities would continue to be eligible for FIT/FIP support, with the details to be further discussed (Committee Opinion, p. 34, note 6).
At the 5th meeting of the Subcommittee on Making Renewable Energy a Main Power Source held on September 30, 2026, a proposal was presented to make the following types of non-rooftop solar eligible for support, which was supported by committee members:
With respect to (iii) solar carports, the subcommittee confirmed that the system design to exclude projects inconsistent with the purpose of the scheme will be carefully discussed, based on the recognition that it would be inappropriate to encourage converting existing land use into parking lots. Future discussions should continue to be monitored.
As for agrivoltaic solar, since the scheduled regulatory amendments will require projects to obtain certification of a Facility Development Plan under the Rural Renewable Energy Act, whether such projects are eligible for FIT/FIP support will be discussed in FY2027 in light of the actual situation following those amendments.
It should also be noted that the review of FIT/FIP applications has become extremely strict compared to the past. As we have repeatedly covered in our Japan Renewables Alerts, the rules on the installation site of facilities, including the restrictions on non-contiguous sites, continue to be applied strictly.
As for the review of the information session requirement, the examination process can be extremely unreasonable, and FIT/FIP certificates have been repeatedly refused for failure to satisfy requirements that are not clearly provided for under the law, or for minor errors or deficiencies, regardless of how much the relevant project obtained understanding and support from the local community.
The operation of the information session requirement is unpredictable and egregious, and, especially for new applications participating in FIT/FIP biddings, a refusal of certification directly results in the forfeiture of a substantial bid bond. When utilizing the FIT/FIP scheme, developers are also required to consider, in light of “METI risk” or “FIT/FIP risk,” whether to apply for FIT/FIP certificate.
The business environment for renewable energy is changing rapidly, and changes to related laws, regulations and systems are frequent. Developers and investors need to accurately keep track of these regulatory developments.
For interested clients, Orrick offers a paid Regulatory Update Report, delivered biweekly by our attorneys, covering important regulatory changes that may affect solar, wind and battery storage projects (available in both Japanese and English). For more information about a subscription, please feel free to contact our team.