Thank you, Dennis.
Yes, this story is solely on the residential segment, excluding non-residential and utility segment.
The federal government also currently supports this emergency preparation by providing a subsidy of 1/3 of the battery installed cost.
Japan also tries to diversify renewable energy mix besides PV. The FIT rate for geothermal system below 15 MW is 42 yen/kWh (~$0.42/kWh) for 15 years and system over 15 MW is 27.3 yen/kWh (~$0.27/kWh) for 15 years.
Bob, Japan is just getting started for the large scale non-residential segment; however, Japan's residential market is one of the oldest (about 20 years old) and largest (+1.2 GW/yr in 2012) in the world. Japan's PV market has been built upon many many local, roof-top installers.
Japan has two key goals with the new FIT – expediting growth of large-scale non-residential systems: (1) support energy supply/diversification post Fukushima nuclear disaster and (2) support growth of domestic production (up to 2007 Japan was the world largest PV production country).
I agree that the roof-top is probably wiser choice specifically space-constraint market like Japan.
For residential systems, it should be from high 300 yen/W to low 400 yen/W ($3-$4/W when $1 = 100 yen conversion). The national government provides a upfront, capacity-based incentive, which pays 20 yen/W for system installed cost is lower than 410 yen/W while 15 yen/W for system installed cost is lower than 500 yen/W and greater than 410 yen/W.