UPDATE 1-Japan panel head eyes incentive seen boosting solar power

* 42 yen (52 cents)/kwh rate may push investors to enter renewable energy market

* Japan to introduce feed-in tariff scheme in July

* Panel head eyes 23.1 yen/kwh for wind power

* Panel may finalise recommendations as early as Friday (Adds panel head and expert comments, background)

TOKYO, April 25 (Reuters) - The head of a Japanese panel suggested on Wednesday that utilities pay 52 cents per kilowatt-hour (kwh) for solar power supplies in a renewable energy incentive scheme, a rate that could encourage business investors to enter the budding market.

Japan will introduce in July a new feed-in tariff scheme, which was originally aimed to help cut fossil fuel consumption and has become a key policy as Japan tries to reduce its reliance on atomic power after last year's Fukushima disaster.

The solar rate was in line with the industry's request and could boost the sector, though it would come at a greater cost to electricity consumers, to whom the utilities pass on the burden.

"The law (mandating the tariff scheme) clearly states that for the first three years, we should pay special attention to profit (of the suppliers)," Kazuhiro Ueta, the head of the panel studying appropriate rates, told reporters.

"When you look at it from the viewpoint of households, this may be a burden through electricity costs. But to put it in other words, this is an investment to promote renewable energy. It is necessary to understand that this is a framework for promoting such energy," he said.