Increase the options for introduction with PPA and increase the sales of the solar-related business
Energy (Hamamatsu City), which sells LP gas, has started a "PPA (power purchase agreement)" business for corporations that provides solar panels free of charge and receives charges according to the amount of electricity used. We will support the introduction of small and medium-sized enterprises by setting out points such as no initial cost. As the momentum for decarbonization increases, we will strengthen our solar-related business.
PPA is generally a mechanism to install solar panels free of charge on the roofs and parking lots of buildings such as companies and local governments. Consumers pay the electricity generated by the PPA operators and consume it in-house. There are no initial costs or maintenance costs compared to purchasing and leasing equipment. The contract period is long, such as 20 years.
Enezin will be developed in collaboration with the parent company Hamanen (the city). Enezin will sell solar panels to Hamanen, which will provide PPA services. Enezin is responsible for the installation work. Assume a customer with an installation area of 1000 square meters or more.
The unit price of electricity for PPA is set individually according to the equipment cost and expected usage, and is fixed during the 20-year contract period. Whether or not there is a price advantage compared to general electricity prices depends on fluctuations in electricity prices, but "in some cases it can be kept cheap" (Enejin staff). It is highly likely that it will be cheaper now that the electricity bill continues to rise.
Increase the options for introduction with PPA and increase the sales of the solar-related business
Energy (Hamamatsu City), which sells LP gas, has started a "PPA (power purchase agreement)" business for corporations that provides solar panels free of charge and receives charges according to the amount of electricity used. We will support the introduction of small and medium-sized enterprises by setting out points such as no initial cost. As the momentum for decarbonization increases, we will strengthen our solar-related business.
PPA is generally a mechanism to install solar panels free of charge on the roofs and parking lots of buildings such as companies and local governments. Consumers pay the electricity generated by the PPA operators and consume it in-house. There are no initial costs or maintenance costs compared to purchasing and leasing equipment. The contract period is long, such as 20 years.
Enezin will be developed in collaboration with the parent company Hamanen (the city). Enezin will sell solar panels to Hamanen, which will provide PPA services. Enezin is responsible for the installation work. Assume a customer with an installation area of 1000 square meters or more.
The unit price of electricity for PPA is set individually according to the equipment cost and expected usage, and is fixed during the 20-year contract period. Whether or not there is a price advantage compared to general electricity prices depends on fluctuations in electricity prices, but "in some cases it can be kept cheap" (Enejin staff). It is highly likely that it will be cheaper now that the electricity bill continues to rise.
According to a survey by research firm Fuji Keizai (Chuo, Tokyo), the domestic market size of solar power generation based on third-party owned models including PPA and leasing is expected to be 27.7 billion yen in FY2009. It is said that it will be an effective introduction method in the transition period from the investment type to the self-consumption type by the feed-in tariff (FIT) of renewable energy. It is expected to grow 9.2 times to 255.3 billion yen in FY2013.
Enezin's solar-related business focuses on sales of power generation equipment, with sales of 200 million yen, accounting for about 3% of the total company. In recent years, it has been almost flat. "The growing awareness of disaster prevention and SDGs (Sustainable Development Goals) is a business opportunity" (the company).
PPA seems to be able to appeal to consumers who are refraining from introducing solar power generation due to the burden of initial costs and maintenance management even if they want to start solar power generation. We anticipate demand for corporate buildings and factories, mainly in Shizuoka Prefecture, and aim to contract with 10 companies first in FY2010. Utilize the customer base built in the LP gas business for sales. The goal is to raise the total solar-related business to 400 million yen in three years.
