Kyocera EPA LLC, a subsidiary of Japan-based Kyocera Corp (TYO:6971), has entered into its first on-site power purchase agreement (PPA) with Shigiya Machinery Works Ltd, a metal machine tool manufacturer, marking a step forward in Japan's industrial renewable energy use.
As part of the agreement, Kyocera installed a 1,080-kilowatt photovoltaic (PV) system on Shigiya's main factory roof, which began generating electricity last week. The solar installation is projected to produce 888,753 kilowatt-hours of renewable electricity annually, offering Shigiya an alternative source of power for its operations.
This on-site PPA model allows clients to benefit from renewable energy without the need for an initial capital outlay, as Kyocera EPA finances the system. Under the contract terms, Shigiya will pay Kyocera a fee based on the amount of electricity generated, effectively enabling the company to power its operations with cleaner energy.
“The arrangement is beneficial as customers can consume their own renewable energy with no upfront investment,” Kyocera noted. The company also stated that any excess power generated from the PV system would be retained by Kyocera for other uses.
