JTEKT Corporation Powers Up 2,500 MWh Solar Carport In Kagawa Prefecture Through 20-Year PPA With Peak Energy

JTEKT Corporation, a global producer of automotive and industrial components and a core member of the Toyota Group, has announced the commissioning of a 2 megawatt-peak (MWp) solar carport at its facility in Kagawa Prefecture, Japan. The project was delivered under a 20-year power purchase agreement (PPA) with Peak Energy. Through this new system, JTEKT expects to reduce electricity costs by nearly 40% compared with purchasing the same power from the grid.

Under the long-term PPA, Peak Energy was responsible for designing, financing and installing the solar carport. The company will also carry out full operations and maintenance activities throughout the contract period. All electricity generated from the installation will be consumed directly within the facility, supporting JTEKT’s broader goals related to energy cost visibility, operational efficiency and long-term decarbonisation.

The solar carport covers 640 parking spaces and was completed within a five-month construction timeline. The system is expected to generate around 2,500 megawatt-hours (MWh) of electricity each year. This output will help avoid approximately 1,090 tons of CO₂ emissions annually, which is similar to removing about 230 cars from the road every year.

The commissioning comes at a time when many of Japan’s export-oriented manufacturers are seeking renewable energy solutions that can be installed within limited land availability and strict operational boundaries. Solar carports built above existing parking areas allow companies to add on-site energy generation without acquiring additional land, while also improving day-to-day functionality through the added benefit of shade and weather protection for vehicles.

Compared with standard rooftop or ground-mounted solar installations, solar carport systems require a higher level of engineering and construction expertise. These projects resemble large-scale infrastructure upgrades due to the need for specialised structural design, advanced safety planning, and careful installation sequencing around an active industrial site. The successful delivery of this project demonstrates the depth of technical experience that Peak Energy has built across industrial deployments in the region.

Mr. Yoshioka, Plant Manager of JTEKT’s Kagawa Plant, noted that the company has already set a target to reduce CO₂ emissions by 60% by fiscal year 2030 compared to fiscal year 2013. He explained that the plant has been implementing its “CO₂ Zero Challenge!” initiative through measures such as introducing inverter controls for hydraulic pumps and compressors to optimise production-floor energy use.

He added that the company has also been installing rooftop solar panels wherever possible and that the partnership with Peak Energy allowed them to utilise the employee parking area to deploy a state-of-the-art solar carport. According to him, JTEKT will continue advancing its efforts toward achieving carbon neutrality.

Gavin Adda, CEO of Peak Energy, stated that JTEKT’s decision to work with the company reflects the confidence that major industrial players place in partners capable of delivering projects with strong technical performance and dependable execution. He explained that solar carports require exceptionally high safety standards and precise engineering, leaving no room for errors or interruptions to site activities. He added that this commissioning represents the beginning of a promising collaboration in Japan and marks an important milestone in Peak Energy’s long-term commitment to the country and its industrial sector.