RENOVA Secures ¥22.3 Billion Project Finance To Build 170 MW Of Non-FIT Decentralized Solar Across 1,300 Sites In Japan

RENOVA, Inc. announced that it has finalized a project finance agreement totaling 22.3 billion yen to support the development of Non-FIT small-scale decentralized solar PV projects. These projects will span approximately 1,300 locations across Japan and will have a combined capacity of 170 MW-DC. The financing was completed through First Solar Power G.K., a consolidated subsidiary of RENOVA. The project finance was arranged with Sumitomo Mitsui Trust Bank, Limited serving as the arranger.

Sumitomo Mitsui Trust Bank and The Bank of Fukuoka, Ltd. acted as joint arrangers, with Resona Bank, Limited participating as co-arranger. Sumitomo Mitsui Trust Panasonic Finance Co., Ltd. served as the mezzanine lender. This financing package is considered one of the largest project finance deals in Japan for Non-FIT solar initiatives.

Japan’s Seventh Strategic Energy Plan, approved by the Cabinet in February, identifies solar power as a key energy source for advancing decarbonization. The plan aims for Japan’s installed solar PV capacity in 2040 to reach 3.6 times its current level. Despite this ambition, project financing for Non-FIT solar developments—particularly those involving the aggregation of numerous small-scale decentralized systems—remains uncommon in the country.

RENOVA has consistently prioritized communication and engagement with local communities in its development activities. The company follows a policy of moving forward with projects only after gaining the understanding and support of local residents, believing this approach is essential for operating long-lasting and community-aligned renewable energy projects.

In line with this approach, the planned decentralized solar projects will be developed with a strong focus on safety, quality, and long-term operational stability of up to 30 years. These projects will also make effective use of unused land, including abandoned farmland, supporting environmentally conscious development with reduced visual and ecological impact. Their small-scale and distributed nature enables faster development timelines, contributing to Japan’s broader decarbonization goals.

RENOVA’s established track record in arranging project finance particularly in areas with few precedents played an important role in securing this significant financing agreement. With a mission to create sustainable and environmentally friendly energy systems, RENOVA continues to advance renewable energy and energy storage projects that support decarbonization. To date, the company has signed power purchase agreements totaling 206 MW with seven companies. By the end of September, 76.6 MW of capacity had already been completed, demonstrating steady progress in meeting consumer demand for low-carbon energy.

This project finance package represents a key step toward RENOVA’s target of reaching 5.0 GW of installed capacity by 2030, including 0.9 GW from its Non-FIT solar business, as outlined in its Medium-term Management Plan. RENOVA plans to continue expanding its contributions to global decarbonization and renewable energy adoption by leveraging the expertise it has developed over the years.