The Locality of Mega Solar Businesses after the introduction of Feed-in Tariff

Abstract

In contrast to other renewable energy resources, solar power facilities have increased rapidly in Japan after the introduction of Feed-in Tariff in 2012. This paper examines the present structure of mega solar power businesses in Japan. Only less than a quarter of enterprises managing mega solar power facilities have headquarters in the same prefectures as the facilities. These enterprises have mainly been established by private companies, but less so by local governments, cooperatives and foundations. The types of the parent companies basing in the same prefectures differ from those in other prefectures. This indicates that the profits of mega solar power facilities have seldom returned to local communities but rather drained to big cities. This paper concludes that mega solar power facilities have much less effect on local economy than expected.