Electricity and gas price subsidy restarts in summer 2026｜Unit discounts, period, and expense treatment for businesses
On May 26, 2026, the government made a Cabinet decision to spend ¥513.5 billion from reserve funds, deciding to restart, from usage in July 2026, the electricity and gas price support that had been paused since April[Agency for Natural Resources and Energy (in Japanese)]. For a standard household this is a burden reduction of about ¥5,000 over three months. Households get the discount automatically without doing anything, but sole proprietors and corporations need to watch for one point in their expense treatment.
Neither households nor businesses need to apply at all; the electricity and gas company you are contracted with automatically discounts the billed amount. For households it is a pure, non-taxable reduction in burden, but electricity and gas used for business means utilities expense goes down, so it works slightly in the direction of increasing taxable income.
What was decided (developments in May 2026)
- May 25, 2026 Prime Minister Takaichi announces the drafting of a supplementary budget (on the scale of over ¥3 trillion).
- May 26, 2026 Cabinet decision to spend ¥513.5 billion from the ¥1 trillion reserve fund. The restart of electricity and gas price support is confirmed.
- From usage in July 2026 The discount is actually applied (reflected in bills from August).
Usage from April to June was a "blank period" with no subsidy. This restart covers the summer period when demand for cooling rises.
Crude oil and LNG prices have stayed high amid U.S.–Iran tensions over the Strait of Hormuz, and that impact is expected to be reflected in electricity and gas prices from around June. Layering measures against high prices on top of this, summer support was decided.
Discount unit prices (usage from July to September 2026)
The discount unit prices are the figures published by the Agency for Natural Resources and Energy (usage from July to September 2026)[Agency for Natural Resources and Energy (in Japanese)].
Electricity (low voltage / general households and small businesses)
| Month | Discount unit price |
|---|---|
| Usage in July 2026 | 3.5 yen/kWh |
| Usage in August 2026 | 4.5 yen/kWh |
| Usage in September 2026 | 3.5 yen/kWh |
Electricity (high voltage / SMEs, factories, etc.)
| Month | Discount unit price |
|---|---|
| Usage in July 2026 | 1.8 yen/kWh |
| Usage in August 2026 | 2.3 yen/kWh |
| Usage in September 2026 | 1.8 yen/kWh |
City gas
| Month | Discount unit price |
|---|---|
| Usage in July 2026 | 14 yen/㎥ |
| Usage in August 2026 | 18 yen/㎥ |
| Usage in September 2026 | 14 yen/㎥ |
The higher unit price set for August is designed to match the peak in electricity use from cooling. The most generous discount takes effect in the period when the most electricity is used.
How much cheaper it gets (guide by household size)
These are guides to the burden-reduction amount over three months (electricity + city gas; it varies with usage).
Comparison with past support
| Period | Budget | Reduction for a standard household |
|---|---|---|
| Summer 2025 | ¥288.1 billion | about ¥3,340 |
| January–March 2026 (winter) | — | about ¥7,300 (mainly electricity 4.5 yen/kWh) |
| Summer 2026 | ¥513.5 billion | about ¥5,000 |
Summer 2026 was expanded to about 1.5 times summer 2025.
Tax points sole proprietors and corporations should know
If you use electricity and gas for business, make sure you correctly understand how the subsidy mechanism affects taxes.
This support is not a benefit where cash is transferred to you; it is a mechanism where the electricity and gas company discounts the billed amount itself. In your books you simply record the actual amount paid after the discount as "utilities expense," and there is no need to separately record the subsidy as miscellaneous income.
Expenses (utilities) going down means profit — that is, taxable income — goes up by that amount.
Example: business electricity charges discounted by ¥6,000 over three months → expenses fall by ¥6,000 → taxable income rises by ¥6,000.
For a sole proprietor with a combined income tax and residence tax rate of 20%, the tax burden rises by about ¥1,200.
However, because you paid ¥6,000 less, your cash on hand is a net plus of about ¥4,800. "Taxes going up = a loss" is not the case.
A sole proprietor who works from home should be treating electricity and gas charges as an expense with business apportionment (e.g., a business proportion of 30%). The reduction in expenses from the discount is also reflected at the same apportionment ratio. The discount on the portion for private use does not affect taxes.
Summary
FAQ
When does the electricity and gas subsidy start? Do I need to apply?
It covers usage from July to September 2026, reflected in bills from August. No application is needed; the electricity and gas company you are contracted with discounts automatically.
How much cheaper does it get?
A burden reduction of about ¥5,000 over three months is expected for a standard household. The discount unit price for electricity (low voltage) is 3.5 yen per kWh in July and September, and 4.5 yen in August.
Is there a point businesses should watch in their tax treatment?
For households it is a pure, non-taxable reduction in burden, but electricity and gas used for business means the utilities expense becomes the post-discount amount, so expenses fall by that amount and taxable income tends to rise slightly.
Reference sources / official information
- Ministry of Economy, Trade and Industry, Agency for Natural Resources and Energy, "Electricity and Gas Price Support" (in Japanese)
- Agency for Natural Resources and Energy, "About support for energy prices" (in Japanese)
- Ministry of Economy, Trade and Industry press releases (special authorization/approval of electricity and gas price support) (in Japanese)
* This article is for informational purposes and is not tax advice. Discount unit prices and periods may change in future official announcements. Please confirm individual tax treatment with a tax office or your advising tax accountant.