Most New Homes in Tokyo Must Have Solar Panels by 2025

­The cost of buying a home or renting a space in Tokyo will shoot up in the next couple years – thanks to a new solar requirement.

The local assembly just passed a law mandating that new homes smaller than 21,500 square feet must come equipped with photovoltaic solar panels. With an average price of around $7,200 for a 4kW installation, this could significantly impact what’s already an exorbitant cost of living for Japan’s capital.

Tokyo is the most expensive city in Japan by a wide margin. One website estimates that the average rent for a mid-range 2-bedroom apartment is about $2,018. And that’s just the unit, itself – utilities are extra – and it obviously doesn’t include things like food, internet, mobile service, public transportation (a must in Tokyo), and the occasional medical expense.

All told, the cost-of-living for a moderate apartment in Tokyo and most living expenses (not including recreation) is around $3,022 per month. From there, certain homebuilders must add solar panels to new homes, and here’s where it gets a bit tricky.

Tokyo’s Bureau of Environment notes that major housing suppliers that supply over 20,000 ㎡ of housing on a yearly basis (approx. 50 companies) will be subject to the solar mandate.

And while existing buildings will be exempt, Tokyo’s government estimates that by 2050 (when the nation strives to be carbon-neutral), half of the existing buildings (70% of which are homes) will be replaced by newly constructed buildings.

On top of that, home ownership is relatively low in Tokyo – about 46% of households own their home, the lowest rate in Japan. The rest are renters.

What’s unclear is whether Tokyo apartment complexes will fall under the same solar mandate, but with so many Tokyo residents renting, it’s unlikely they’ll escape these pending expenses. More likely, just about everyone living in Tokyo will end up paying for these new solar panels, directly or indirectly.

Tokyo’s government estimates that, with energy savings of about $704 per year under the currently available grant, the installation can be recouped in about 6 years.

That’s a bold prediction and a huge cost burden for one of the most expensive cities in the world.