The Japanese government is threatening to cut existing solar power project subsidies angering the power producers and investors that say the cuts will undermine their profitability and violate earlier agreements. The Ministry of Economy, Trade and Industry (METI) last month proposed that companies granted permits for solar projects between the fiscal years of 2012 to 2014 under so-called Feed-In-Tariffs (FIT) that guarantee minimum power prices submit applications by March 2019 to connect to the grid. Companies that miss the deadline will have their tariffs cut. Japan introduced the FIT to spur solar developments to fill the power gap after the country closed its nuclear power plants following the 2011 Fukushima disaster. METI has said the cuts are necessary to reduce the public burden of the FIT subsidies, which are added to consumers bills. Investors and operators in solar projects are angry with the proposals, threatening lawsuits against the government for breaching the earlier contracts. 

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Reuters