Download now: Cannabis Cash

Japanese Solar Company Plans 250 Plants

Investment of $1.3 Billion

Written by Swagato Chakravorty
Posted August 27, 2012 at 2:10PM

Japan Mega Solar Co., a company created by Japanese home renovator West Holdings Corp. (PINK: WSTHF), will invest around $1.3 billion in developing solar plants designed to take advantage of the country’s feed-in tariffs for renewable energy development.

The project calls for 250 plants with a combined capacity of around 500 megawatts. Japan Mega has already found interest from 12 investors, including Orix Corp. (NYSE: IX), JA Solar Holdings (NASDAQ: JASO), and LS Industrial Systems Co. (KRX: 010120) of South Korea, Bloomberg reports.

Under Japan’s new incentive program, utilities pay above-market rates to the developers of clean energy; this cost difference is passed on to the consumer in the form of surcharges. The feed-in tariff is set at a highly attractive rate of 42 yen per kilowatt-hour for 20 years, which is almost 3 times what industrial users pay for conventional electricity (as of the year ended this March).

From Bloomberg:

“We will give priority to JA Solar and LS Industrial Systems” for solar panels to be used in the plants, [West Holdings Corp. Senior Managing Director Toshihisa] Nagashima said. The company may review the project depending on preferential rates set annually by the government for clean energy, he said.

Related Articles

Solar Competes with Natural Gas
Editor Jeff Siegel discusses a new solar technology that could allow solar to become cheaper than natural gas.
Solar Takes a Tumble
Outlook for solar energy industry weakens as solar companies file for bankruptcy one right after the other.
OCI Solar to Build Biggest Solar Utility
OCI Solar Power and CPS Energy are forming a partnership to create a 400-megawatt utility solar project.


The Rent is Too Damn High and Other Oddities
Is it Safe for You to Buy Coal Stocks Yet?
Shedding Light on the Death of the Coal Industry
Investing in the Future of Solar
How to Profit Like an Investment Banker
Without the ITC, is Solar Still a Good Investment?
Will THIS Kill the Solar Industry?
Buffett Has a $4.5 Billion Stake in This Refiner
Refiners Are Safe Havens During the Low-Price Period
An OPEC Civil War Erupts
Strange Things Afoot in the House of Saud
Energy Utilities NEED the Internet of Things
Stay connected to stay on target!
The Lithium Revolution Just Got Hotter
Utility-Scale Lithium Batteries Taking Off
Metal Oil Investing 101
Meet the Oil of the 21st Century
The Rent is Too Damn High and Other Oddities