Overview
- Kushiro City Council unanimously approved the ordinance change on June 23 that forces solar operators to deposit decommissioning guarantees in a bank and sign a pledge with the city.
- The city set a clear calculation for the deposit as the highest of ¥10,000 per kW, 5% of total construction costs, or the operator’s estimated disposal cost.
- The pledge (質権設定) prevents operators from withdrawing the funds without city approval so the money remains available for removal if a company goes bankrupt.
- The amendment takes effect on December 23, 2026, replacing the previous rule that only required operators to accumulate funds and report annually to the city.
- The move responds to a national rise in abandoned solar farms and follows similar measures elsewhere in Hokkaido, and it could raise upfront costs for developers and change how banks handle project security.