27 grid-scale BESS projects secure 34.6B yen through METI''s
The subsidy, which covers between one and two thirds of equipment and construction costs depending on technology, was open for applications between the end of August and the
The subsidy, which covers between one and two thirds of equipment and construction costs depending on technology, was open for applications between the end of August and the
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A Growing Need for Energy Storage The increasing generation of renewables on the Japanese grid has led to various support policies and CAPEX subsidy schemes to support the deployment of grid-scale Battery Energy Storage (BESS).
These are the Ministry of Economy, Trade, and Industry (METI) and the Tokyo prefectural subsidies. There are a series of requirements to be eligible: projects must have a minimum capacity of 1 MW, the battery must be able to participate in various markets, and the battery must be directly connected to the grid. The Market for Energy Storage
The push is reinforced by Tokyo’s 2025 regulation requiring solar panels on new homes, and the launch of virtual power plant (VPP) programs—slated to begin in fiscal 2026—that will let households sell surplus energy to the grid.
The subsidy covers up to 2 billion yen per project. A total of 12 projects totaling 180MW/595.3MWh was awarded 13 billion yen through Tokyo’s FY2024 subsidy for promoting grid-scale battery storage, the metropolitan government’s document released in February 2025 shows.