Fabsco Co Ltd (Fukuoka City) announced a solar electricity sales business using carport-type solar power generation facilities Nov 27, 2017.
The business, which Fabsco calls "Solar PPA," uses a "third party ownership model." The company will partner with Omron Corp and NTT Smile Energy Inc (Osaka City) in the aim of selling solar electricity to commercial facilities and local governments.
As the first project, carport-type solar power generation facilities (total capacity: 48.6kW) developed by Fabsco will be installed at four facilities that Aso City, Kumamoto Prefecture, designated as emergency shelters.
The carport-type solar power generation facilities were certified by Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and are fire-resistant. Also, they can bear a horizontal seismic coefficient of 1.0h. They can supply electricity to evacuees, charge information terminals and electric vehicles and enable to use emergency apparatuses.
With the third party ownership model, a power producer raises capital from a third party and sets up a solar power generation system at the site of a power consumer. The power consumer purchases the used amount of power generated by the system from the power producer. The power consumer who provides the site can use solar electricity without paying a large amount of initial investment.
In the latest case, it becomes possible to build shelters and secure emergency power sources practically for free.
The third party ownership model is a business model that is widely employed for setting up solar power generation facilities in the US, where there is no feed-in tariff (FIT) policy. As a method to promote the use of renewable energy without requiring power consumers to pay initial investment, there are high hopes for the business model in Japan, too. Fabsco is the first company that has employed the model as a scheme to raise capital from a financial institution in Japan, the company said.
In the project in Aso City, E-Facility Co Ltd (Osaka City), a subsidiary of Fabsco, will sublease the facilities from Iyogin Leasing Co Ltd (Matsuyama City, Ehime Prefecture). Fabsco plans to expand the business across Japan with help from other financial institutions, the company said.