JAPAN Trends and Developments Contributed by: Takahiro Kobayashi, Shigeki Okatani, Yusuke Murakami and Hirohiko Tanaka, Mori Hamada
Additional regulation for co-existence with the local community The rapid development of renewable power plants across Japan has led to cases of regulatory non- compliance and adverse environmental impacts. In particular, large-scale solar (mega-solar) projects have faced increasing scrutiny. In response, the government has introduced addition- al regulations requiring developers to obtain material permits (forest areas, land reclamation, land slide/ero- sion) at the time of FIT/FIP application. Non-compli- ance may result in tariff or premium payments being withheld until breaches are remedied. From 1 April 2024, developers of renewable power plants (excluding roof-top solar and small solar under 10 kW) have been required to hold briefing sessions for local residents to explain project plans and impact. This applies to initial certification and when certified matters are altered, including changes to the devel- oper or its Closely Related Parties. A “Closely Related Party” includes: • members of Godo Kaisha (equivalent of a limited liability company); • shareholders holding a majority of voting rights in Kabushiki Kaisha (equivalent of a joint stock com- pany); • silent partners ( Tokumei Kumiai - In ) with majority interest in the relevant silent partnership business; and • the parent company of any of the above. This requirement will apply to acquisition and M&A transactions, materially impacting deal practice in this sector. These regulations significantly impact developers in the Japanese renewable energy market. The matters to be explained at briefing sessions are prescribed in detail in the guidelines published by METI, and METI enforces these requirements very strictly. In particular, there have been numerous cases where developers have been instructed to redo briefing sessions due to minor deficiencies, such as incomplete descriptions of required permits, or slight errors in citing applica-
ble laws and regulations. As a result, the market has come to recognise the critical importance of carefully reviewing briefing materials for any deficiencies prior to holding the sessions. In addition, the authorities have increasingly focused on enforcement in relation to non-compliant renew- able energy projects, particularly large-scale solar pro- jects. The Agency for Natural Resources and Energy has strengthened monitoring and investigations of regulatory violations, and a number of projects, mainly solar projects but also some biomass projects, have been subject to certification revocation or orders to return subsidies. This trend underscores that com- pliance with permitting, community engagement and operational requirements has become a core issue for project development and secondary transactions. In December 2025, the government adopted a pol- icy package for large-scale solar projects, focusing on stricter enforcement against non-compliant pro- jects, closer co-ordination with local governments, and prioritisation of support for projects that co-exist with local communities. The package contemplates enhanced environmental, forestry, landscape, safety and land-use controls, as well as closer monitoring of both FIT/FIP and non-FIT/non-FIP solar projects. Separately, discussions on a new recycling framework for solar panels have progressed, reflecting concerns over the expected large-scale disposal of PV panels from the late 2030s. These developments suggest that PV projects in Japan are increasingly subject to life cycle-based regulation, from development and opera- tion through to decommissioning and recycling. Nonetheless, the government remains committed to promoting renewable energy as Japan’s main energy source, and these reforms should be seen as positive steps towards a more resilient and sustainable energy industry. Introduction of a certification system for “Qualified Long-Term Stable Photovoltaic Power Generation Business Operators” To promote long-term stable PV power generation, METI has introduced a certification system for “Quali- fied Long-Term Stable Photovoltaic Power Generation Business Operators” to consolidate the industry under
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