The Tokyo metropolitan government may be the first in the country to require all new homes to have solar panels. How will this affect home buyers and builders?

For starters, the obligation would only apply to builders of pre-designed houses. One of the city’s considerations would place an obligation on home builders that have an annual construction supply of over 20,000 sqm in Tokyo. For someone creating their own custom-built home, they can choose whether to add solar panels or not.

A standard 4-kilowatt solar panel set-up costs around 900,000 Yen (approx. US$6,600). With subsidies provided by the Tokyo metropolitan government and electricity savings, the break-even point is estimated by the government to start at around the 6-year mark. Those opposed to the plan say it will make housing less affordable to consumers. 

Tokyo has a goal of becoming ‘carbon half’ by 2030 by reducing greenhouse gas emissions in the capital and increasing the share of renewable power to 50%. This is part of that plan. The government estimates that there are as many as 1.8 million houses in Tokyo that would be suitable for solar panel systems, yet only 5% currently have them installed. 

If the plan goes ahead, the obligation could be introduced by 2024 at the earliest. 

Sources:
The Nikkei Shimbun, June 21, 2022.
The Tokyo Shimbun, June 9, 2022.

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