The number of applications for installation support subsidies that have started this year, stands at 20,000 so far. Thus strong demand reduces costs, the study finds. In order to promote solar power in private homes, the government has been subsidising installations with JPY 70,000 per kWh since January. The average home installation is between 3 ? 3.5 kWh and subsidies typically range between JPY 210,000 ? 250,000. The budget for 2008 earmarked JPY 9 Billion for 35,000 installations, for 2009 the figures stand at JPY 20.1 Billion for 80,000 installations. The mentioned 20.000 applications as of the end of March comprise a subsidy volume of JPY 5.6 Billion. The system cost calculation was based on the 2007-price of JPY 700,000 per kWh, but the received applications average at a reduced JPY 600,000 per kWh. The METI concludes that this price drop is caused by the expanding market volume.

Reference: Nikkei Shinbun, 5 April 2009