The Ministry of International Trade and Industry plans to scrap government subsidies for solar power generation equipment for household use at the end of fiscal 2002 in order to boost competition in the industry, ministry sources said Wednesday.
The ministry has already begun sounding out manufacturers on its intention to terminate the subsidy system by March 2003, the sources said.
The ministry started subsidizing household purchases of solar power generation equipment in fiscal 1994. However, it now thinks there is less of a need for subsidies because advances in technology have led to lower prices.