"Solar Panel Tax", Japanese local governments to tax solar panels

The year 2021 marked a major turning point in the history of Japan's energy policy. In December, Mimasaka City, Okayama Prefecture passed its own taxation ordinance on solar panels in its assembly.

This initiative, which was in direct opposition to the global trend of climate change countermeasures and the spread of renewable energy, had a huge impact on Japanese society.

With the rapid spread of solar power generation under FIT in Japan, the development of solar power generation has increasingly become a problem for local residents. However, this taxation ordinance is not intended to solve that problem.

The mayor decided to take advantage of the local community's opposition to the solar power project and slap a new tax on it to finance a policy with a completely different purpose.

The new taxation ordinance will increase tax revenue by 100 million yen per year in Mimasaka City. While this will benefit the current generation, it will stall investment in renewable energy. Therefore, the future generations will have to pay the price.

By March of this year, the Japanese government will have to approve or reject this decision by Mimasaka City. If the government approves, there will be more local governments that will impose similar taxes.