The government promotes the diffusion of energy efficient houses and buildings by providing special financial or tax incentives as follows:
1. Low interest loan programme for energy conservation renovation of buildings: Targeted for energy conservation renovation projects for existing buildings using ESCOs (Energy Service Company), companies that provide energy efficiency improvement services and advice to the client. Funds may be provided to execute these projects by a way of leasing or an Energy Service Provider (ESP). This business provides expertise on energy conservation measures, managing multiple workplaces in an integrated manner.
2. Low interest loan programme for plans for environmentally-friendly buildings these are provided for specific measures taken in the planning phase, such as energy conservation measures, roof-top greening projects, etc.
3. Tax Scheme for Promoting Investment in the Reform of the Energy Demand-Supply Structure This scheme is available for businesses that acquire specified energy conservation equipment. It provides special depreciation rate applied for 30% of the acquisition cost (small scale businesses are provided with the option of a 7 % tax deduction of the acquisition cost). Demand leveling facilities and multiplexing electricity distribution facilities benefit from a special depreciation rate applying to 50% of the acquisition cost. Since fiscal year 2006, highly-efficient equipment and systems used in the residential and commercial sectors, such as highly efficient air conditioning systems, high insulation windows facilities, and light-emitting diodes, are covered by this scheme.
4. The Japan Housing Finance Agency (JHF) (previously Government Housing Loan Corporation, GHLC) allows for lower interest rates and preferential loans to be provided for energy efficient houses. The GHLC provided an extra loan for houses meeting energy saving performance, earthquake resistance performance or elderly and handicapped performance technical standards set by the GHLC.
For energy performance, all the houses for which the loan was requested had to meet at least the 1980 thermal insulation standard. On top of that, an extra loan was provided for those meeting the 1992 or 1999 standards. In 2003 direct loans were no longer provided, and the JHF began underwriting a long-term and fixed interest rate loan called "Flat 35", with energy conservation performance one of the items evaluated to determine loan conditions. All houses applying for the loan must meet 1980 thermal insulation standards, and reduced interest rates are provided for those meeting the 1999 standards.
5. Promoting energy-efficient public housing buildings, through the Organisation for Promoting Urban Development, which comply with specified energy conservation levels. Subsidies are also provided to housing facilities that comply with 1999 energy conservation standards, setting more rigorous criteria for environmental, resource and energy use.
Subsidy for "Install high efficient building materials to existing houses and building "was issued. Its application period was from Mar 31, 2015 to Aug 31,2015 (separated to 4 times). Total budget was 7.3 billion yen.