Japanese industry minister Yukio Edano approved a new law on feed-in tariffs for renewable energy, the Japan Daily Press reported.

Starting July 1, solar-generated electricity will be priced at 42 yen ($0.53) per kilowatt-hour, double the rate offered in Germany and more than three times that of China’s.

Wind power will be paid 23.1 yen ($0.6) for every kilowatt-hour, twice as much the rate in Germany.

The policy will require utility companies in Japan to buy electricity from renewable sources such as solar, wind and geothermal at premium prices for the next 20 years.

According to CLSA Asia-Pacific, an independent equity brokers and financial services group, solar energy in Japan will increase to 19 gigawatts by 2016 from its current 5 gigawatts, while wind power can reach approximately 7.6 gigawatts in the next four years.

Aside from the gain in alternative power capacity, CLSA also predicts that the tariff will boost the country’s revenues related to renewable energy by more than $30 billion by 2016.

The Japanese government said the approval of the new law is a first step in driving Japan toward clean energy.

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