On November 15th, Tokyu Fudosan announced that it will install solar panels as standard equipment in all of its condominiums developed in the future.
These include the Branz strata title condo series, the Comforia series for long term leasing, and the Campus Village series geared towards leasing for students.
In the condominiums, the electricity generated will be used in part to light the common areas of each property during the daytime, and in some of the more expensive properties, solar panels and storage batteries will be installed together to improve the efficiency of using renewable energy.
To start with, 13 properties currently being designed across Japan will be equipped with solar panels (and in some cases, storage batteries) according to their scale.
According to the company's estimate, by 2030, approximately 800,000 kWh of electricity will be generated annually, reducing CO2 emissions by 609 t-CO2 per year, which is equivalent to burning 1,000 drums of crude oil or 1.88 million tons of coal.
Tokyu Fudosan plans to implement Purchase Power Agreements (PPA) in conjunction with its group company ReENE that focuses on converting idle real estate into wind and solar power generation facilities.
PPA agreements are where the purchase and installation of power generating machinery are bundled into a service agreement where the host (a residential building in this case) agrees to a fixed term contract to purchase electricity from the Independent Power Producer (IPP; in this case ReENE) rather than the local utility company.
Via the PPA, the host can purchase power from the IPP at cheaper rates than normal power buying methods without needing to pay large, upfront costs for the needed equipment.
The PPA model will be introduced in rental properties such as Comforia and Campus Village for example, where the rooftops and other spaces will be rented out as solar panel installation sites for ReENE.
In the future, the company plans to use the PPA model to increase its power generation capacity by turning idle land into a renewable energy power plant.
Further Reading
Tokyu Fudosan Press Release (Japanese only; November, 2021)
