Kanagawa Solar, Battery and V2H Subsidies 2026: ¥500,000

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This is an English translation of our Japanese article. Rules and figures may change; the Japanese version and official sources are authoritative. For individual matters, consult a tax office or a licensed tax accountant (zeirishi).

If you are installing solar panels, a home battery, or V2H equipment in Kanagawa Prefecture, three points matter for the 2026 fiscal year (Reiwa 8). First, the prefecture pays ¥70,000/kW for solar plus ¥150,000 per battery, but installing both at the same time is an absolute condition. Second, the first application round has already closed and a second round is expected around September 2026. Third, V2H is not covered by the prefecture — you pick it up from municipalities such as Sagamihara (¥200,000) and Yokohama (¥100,000). On top of that, Kawasaki City's battery cap of ¥700,000 is among the most generous anywhere in Japan. This article organises how to combine prefectural, municipal, and national programmes, and the tax treatment of what you receive.

Kanagawa's household support is a two-tier structure

Tier 1: Prefecture

¥70,000/kW solar plus ¥150,000 per battery

The FY2026 Kanagawa Residential Solar and Storage Battery Introduction Cost Subsidy. Simultaneous installation is required, and the home must have secured earthquake resistance.

Tier 2: Municipality

V2H lives here, and amounts vary a lot

Sagamihara pays ¥200,000 under its self-consumption course covering batteries and V2H; Yokohama pays ¥100,000 for V2H; Kawasaki caps batteries at ¥700,000.

National

V2H up to about ¥1.3 million

The charging infrastructure subsidy covers V2H for private homes: up to ¥750,000 for the unit plus up to ¥550,000 for installation. The national DR home-battery subsidy closed in May 2026.

The date that matters most: the prefecture's second round, around September 2026

The first application round has already closed, and the second round is scheduled for around September 2026. The prefectural subsidy requires applying and receiving a grant decision before construction starts, so if you are planning work for the autumn onwards, note the opening date. Looking for a subsidy after ordering the work is too late.

The prefectural programme

Eligible equipmentAmountNotes
Solar PV¥70,000 per kW of outputCapped at eligible costs
Storage system¥150,000 per unitMust be registered with SII as eligible equipment
V2H charging/discharging equipmentNot eligible (use municipal and national programmes)
Worked example: 5kW of solar plus one battery, installed together

Solar: 5kW × ¥70,000/kW = ¥350,000

Battery: ¥150,000 × 1 unit

= ¥500,000 in total from the prefecture

"Solar only" or "battery only" cannot be submitted

This subsidy requires solar PV and a storage system to be introduced together. Adding a battery to a house that already has solar is not covered by the prefecture (check municipal programmes instead — Kawasaki City does cover batteries connected to existing solar).

  • Who can apply: for detached homes, an individual who owns or holds sectional ownership of the eligible home. For multi-unit buildings, the management association of a condominium in the prefecture, or an individual or corporation owning a rental building in the prefecture
  • The home: located in Kanagawa Prefecture and with secured earthquake resistance
  • The equipment: the storage system must be registered with SII (Sustainable open Innovation Initiative) as eligible equipment for FY2025 or later
  • Order of operations: apply and receive a grant decision before construction starts. There are deadlines for the completion report too
  • Combining with other schemes: the prefecture says it is "possible, but depending on the type of subsidy, combination with the prefecture may not be permitted." Some municipal guidelines prohibit combining with prefectural money, so always check with the municipal office as well

Municipalities: hundreds of thousands of yen apart within the same prefecture

CitySolarBatteryV2H
Kawasaki City
Solar Equipment Installation Subsidy
¥70,000/kW (half of installation cost, capped at ¥280,000, non-FIT). ¥40,000 flat if FIT applies¥100,000/kWh (half of installation cost). Capped at ¥700,000 when connected to non-FIT solar; ¥300,000 when connected to FIT or existing solarNot eligible
Yokohama City
Yokohama Green Energy Partnership (YGrEP)
¥15,000/kW (up to 4kW = ¥60,000)¥120,000 per unit¥100,000 per unit
Sagamihara City
Residential Smart Energy Equipment Incentive
Solar-only course: ¥80,000 (450 slots a year)Self-consumption course (battery, V2H): ¥200,000 (470 slots a year)
Fujisawa City¥50,000 per unit added when V2H is installed at the same time as an EV or PHEV
Atsugi CityV2H ¥50,000 per unit (EV ¥100,000 standard / ¥50,000 mini; renewable-use bonus ¥100,000)
Odawara CityStationary battery ¥50,000 per unitV2H ¥50,000 per unit
In Kawasaki, "not taking FIT" more than doubles the battery cap

Kawasaki caps batteries connected to non-FIT solar at ¥700,000, and batteries connected to FIT or existing solar at ¥300,000. Solar itself is ¥70,000/kW (capped at ¥280,000) without FIT versus a flat ¥40,000 with it. You have to decide at the design stage whether to take feed-in revenue or the subsidy plus self-consumption. Applications run 24 April to 28 December 2026, with a construction completion deadline of 31 January 2027.

Yokohama pays in points, not cash, and requires J-Credit participation

YGrEP aggregates the CO2 reductions from installed equipment for use under the J-Credit scheme, and returns cashless points to participants. Points require joining YGrEP, along with submitting data around once a year (participation is optional for V2H only). Coverage is broad: EVs get ¥100,000 with solar or ¥50,000 without, eco-cute ¥20,000, Ene-Farm ¥30,000, solar thermal ¥50,000. Introduction applications run 15 June to 25 December 2026; completion applications run 16 June 2026 to 22 January 2027.

Sagamihara uses a lottery, not first-come, first-served

Sagamihara accepts applications in two rounds and holds a lottery if the planned number is exceeded. Amounts are flat: solar-only course ¥80,000, self-consumption course (battery, V2H) ¥200,000, ZEH course ¥300,000, and an LCCM housing bonus of ¥100,000 added to the ZEH course (5 slots a year). Having no unpaid municipal taxes is also a requirement. This is not a scheme where rushing helps — check each round's deadline and apply with time to spare.

National programmes: V2H is the main event; the battery DR subsidy has closed

National programmeStatus as of August 2026
Charging infrastructure subsidy (V2H)Up to ¥750,000 for the unit plus up to ¥550,000 for installation — around ¥1.3 million for a private home. Grant applications expected July to September 2026. Conditions include agreeing to provide installation data to national and local government and to cooperate if asked during a disaster
DR home battery programme (FY2025 supplementary, capped at ¥600,000)Closed on 29 May 2026 when the budget was exhausted; the implementing body has stated it will not reopen applications
Housing Energy-Saving 2026 CampaignThree ministries jointly running Advanced Window Renovation 2026, Water Heater Energy-Saving 2026, and Mirai Eco Housing 2026 (successor to the Child-Rearing Green Housing Support Project). Worth checking if insulated windows or a high-efficiency water heater are part of the same job

Model case: 5kW of solar plus a 10kWh battery in an existing Kawasaki home

Prefecture¥350,000 solar (¥70,000/kW × 5kW) plus ¥150,000 battery = ¥500,000
Kawasaki CityDesigned without FIT, solar is capped at ¥280,000 and the battery at ¥700,000. Whether it can be combined with the prefecture depends on the city's guidelines, so check both offices
V2HNot covered by Kawasaki. Pursue the national charging infrastructure subsidy on its own (unit cap ¥750,000 plus installation cap ¥550,000)
SequencingWait for the prefecture's second round (around September 2026); Kawasaki closes 28 December; the national V2H window is expected July to September. Because the three windows differ, set your construction dates by the latest grant decision

The most common failure in Kanagawa is exactly this mismatch of application windows: the city's budget runs out while you wait for the prefecture's second round, or you start work to meet the city's deadline and end up ineligible because the prefecture has not yet issued its decision. Before signing a construction contract, list every programme you intend to use and build the schedule around the latest grant decision.

Is the subsidy taxable?

A subsidy an individual receives for their own home is occasional income. There is an annual special deduction of ¥500,000; if your total occasional income for the year exceeds that, half of the excess is added to your other income and taxed. In Kanagawa, ¥500,000 from the prefecture plus municipal top-ups means you will almost certainly exceed the threshold.

Attaching one form at tax-filing time can make it tax-free (Income Tax Act, Article 42)

If you acquire a fixed asset (solar panels, a battery, V2H equipment) using a national or local government subsidy, attaching the "Statement Concerning Exclusion of National Treasury Subsidies from Gross Revenue" to your tax return keeps the subsidy used to acquire the asset out of gross revenue. This applies to private individuals, not only businesses.

  • Support returned as points, such as Yokohama's YGrEP, can also count as an economic benefit and thus occasional income. Keep a record of the amounts
  • Spreading receipts across years (solar and battery this year, V2H next year) also helps you stay within each year's ¥500,000 deduction
  • Residential solar under 10kW on your own roof is generally outside fixed asset tax (depreciable asset tax)
  • Income from selling surplus electricity is miscellaneous income; salaried workers may not need to file if it and other side income total ¥200,000 or less a year

Frequently asked questions

Q. How much is Kanagawa Prefecture's solar and battery subsidy?

A. For the 2026 fiscal year, solar is ¥70,000 per kW of output and a storage system is ¥150,000 per unit. Five kW of solar plus one battery comes to ¥500,000. Solar and a battery must be introduced together; neither alone can be submitted.

Q. When does the prefecture accept applications?

A. The first round has already closed, and a second round is scheduled for around September 2026. Because you must apply and receive a grant decision before starting work, check the opening date if you are planning construction from the autumn onwards.

Q. Is there a V2H subsidy in Kanagawa Prefecture?

A. Not in the prefecture's residential solar and battery subsidy. V2H comes from municipal programmes: Sagamihara pays ¥200,000 under its self-consumption course covering batteries and V2H, Yokohama ¥100,000, Atsugi and Odawara ¥50,000, and Fujisawa adds ¥50,000 per unit when installed together with an EV or PHEV. The national charging infrastructure subsidy is up to ¥750,000 for the unit plus ¥550,000 for installation for a private home.

Q. Can prefectural and municipal subsidies be combined?

A. The prefecture says it is possible, but that depending on the type of subsidy, combination with the prefecture may not be permitted. Some municipal guidelines prohibit it, so check with the municipal office case by case.

Q. What if I only want to add a battery to a house that already has solar?

A. The prefectural subsidy requires simultaneous introduction, so that is not eligible. Municipal programmes may cover it — Kawasaki City covers batteries connected to existing solar at ¥100,000/kWh, capped at ¥300,000. Check your municipality's guidelines.

Sources

This article is based on the following public sources. Amounts, caps, and application status change with the fiscal year and budget consumption. Always check the official sites and guidelines before applying.

*This article is for information only and is not tax or application advice. Amounts, requirements, and application status are as of August 2026 and programmes may close early once budgets are exhausted. Confirm individual cases with the relevant subsidy office, a tax office, or a licensed tax accountant.