Rooftop installation in 'third party ownership model'

In the "third party ownership model" of rooftop solar power equipment, a power producer installs the equipment on the site of a power consumer, obtaining financing from a third party. As for the power generated by the equipment, the power consumer purchases the amount of power that it consumes only from the power producer. The consumer signs a "power purchase agreement (PPA)" with the power producer and can use the power generated by the solar power equipment without a significant initial cost by offering the site.

Business models of this kind were started in the US and have been a driving force for expansion of rooftop solar power equipment.

Under the current situation where installation of solar power equipment on existing houses is stagnating, schemes of this type are attracting attention as means to install residential solar power generation equipment with no initial investment and are recently being actively incorporated in Japan. Behind the active incorporation of these schemes is recognition of such projects as the new and promising targets of loans to solar power projects by the financial sector, while new ground-level mega solar power plant projects are decreasing.

Companies with proven results in the residential solar power field are starting the business. In addition to Japan Ecosystem Co Ltd of Minato-ku, Tokyo, which started the business prior to others, leading local companies including Denkasinki of Matsuyama City, Yokohama Kankyo Design Co Ltd of Yokohama City and FaBSCo Co Ltd of Fukuoka City announced their entry into the business in the third party ownership model (Fig. 13).

Fig. 13: Business scheme of FaBSCo (source: FaBSCo)