iGRID leading renewable energy growth in Japan amid global solar power surge

As renewable energy rapidly expands worldwide, solar power has gained prominence alongside established sources like hydropower and wind energy. By the end of 2021, solar power capacity surpassed 900 GW while wind power exceeded 800 GW, both significantly outpacing nuclear power’s capacity of 400 GW. Combined, wind and solar reached about 1,800 GW, which is 4.5 times that of nuclear power. Approximately 81% of new power installations worldwide in 2021 came from renewable sources, the highest proportion ever recorded.

Over 50 countries worldwide, including Japan, now generate more than 10% of their annual electricity from solar and wind power. As of 2022, solar energy accounts for 10.6% of Japan’s energy consumption, and the country’s 2030 target is to increase it to 14-16% of energy mix, which they are on track to meet.

Even so, Japan is still heavily reliant on fossil fuel, with 72.8% of its energy mix coming from natural gas, petroleum products, and coal. Japan is also heavily betting on hydrogen energy, doubling down on the Hydrogen Society Promotion Act, a legislative framework aimed at advancing hydrogen production, storage, and utilisation to bolster energy security.

With the flames of the climate crisis licking at our feet, we are rushing to increase decarbonisation efforts and battle any hindrances. Increasing solar energy usage is a crucial step against what is to come. And there is a leader in Japan progressing the adoption of solar energy among businesses: iGRID SOLUTIONS Inc.

iGRID SOLUTIONS Inc. is a Japanese energy company specialising in renewable energy solutions and energy management services. Their primary focus is on promoting green energy circulation to enhance the self-sufficiency of renewable energy for businesses. iGRID has been holding the top provider in Japan for three consecutive years for their Power Purchase Agreement (PPA) service, which involves installing solar panels on facility rooftops to generate renewable energy.

We spoke to iGRID SOLUTIONS Inc. to gain insight into their leading efforts in advancing the adoption of solar energy and learn how their initiatives extend beyond merely promoting renewable energy.

iGRID’s market leadership in solar power adoption

iGRID helps companies increase their renewable energy self-sufficiency rate by owning decentralised solar power plants. They install solar panels primarily on the roofs of supermarkets, home improvement stores, and logistics facilities. Along with it, they also offer solutions to maximising the use of the produced energy, including battery storage and EV charging. iGRID is the leader in its field, having held the no. 1 market share for PPA in Japan for the past three years.

Their 1,000 installations, located across all of Japan except Hokkaido, produce 240MW of solar energy, equating to a carbon reduction of approximately 37,000 households. iGRID’s business plays a vital role in Japan’s goal for carbon neutrality by 2050.

iGRID’s business mission is “R.E.A.L. New Energy (Creating a World where Green Energy Circulates),” and they chose to develop businesses that solve corporate challenges by focusing on energy. In that search, they settled on the idea of installing solar panels on rooftops because it was the best form of energy for their customers.

“Instead of delivering energy generated at distant power plants through power lines, we thought it would be more efficient to use the electricity directly where it’s generated. Rooftops had extremely high potential, as there are challenges of availability of large-scale development sites and environmental concerns.

“Initially, renewable energy was introduced from a cost-saving perspective, However, climate change became worse, and customers’ interest shifted towards decarbonisation. Furthermore, perspectives on energy, such as business continuity, have broadened considerably.”

Maximising renewable energy use through power sharing and happy customers

A PPA (Power Purchase Agreement) is a long-term agreement where a consumer contracts with a power producer or electricity retailer to purchase renewable energy. The PPA model generally limits the installation to the amount of electricity that can be consumed by a facility.

“Facilities with lower electricity consumption may underutilise renewable energy, even with ample roof space. Solar power is dependent on the weather, too. That is why we developed a Surplus Electricity Circulation Scheme that uses AI to forecast and utilise surplus electricity, supplying it to other customers. This system maximises solar power generation at the facility, not only covering its electricity needs but also supplying surplus electricity to other customers. This increases the overall renewable energy utilisation rate.

“Additionally, electricity prices rose along with increased energy volatility risks in recent years. With PPA, customers can purchase energy at a fixed long-term price, ensuring a stable management foundation.”

Furthermore, iGRID’s offering allows businesses to play a key communal role during disasters. “The installed solar power equipment can serve as a temporary power source. Since our main clients are supermarkets and other retail facilities that serve as essential community infrastructure, we recommend installing solar power as a preparedness measure to enable these facilities to resume operations as quickly as possible in emergencies.”

iGRID’s clients have shared how they have benefited from working with iGRID. Valor Holdings, which operates a number of popular supermarkets in Japan, has been partnering with iGRID to implement onsite PPA at their facilities since 2017. They reported significant cost reductions, particularly helpful in managing adjustment charges, energy surcharges, and rising electricity rates.

Valor also highlighted the added benefit of heat shielding. Some of their facilities experience high summer temperatures, and the installation of solar panels has mitigated heat buildup. This has improved air conditioning efficiency and provided cooler work environments for their staff.

SENKO Group Holdings Co., Ltd., another iGRID client, is actively promoting renewable energy by making effective use of the expansive roofs of its logistics centres. With the anticipated spread of EV trucks, the company aims to utilise storage batteries for time-based charging tailored to different periods.

Overcoming obstacles through educating businesses

Increasing renewable energy is crucial for Japan. Not just because of the climate crisis, but for energy security too. As energy volatility risks rise, increasing local energy production and consumption is also vital for Japan’s future.

However, there are several obstacles Japan businesses still face when it comes to adopting renewable energy. One issue is infrastructure. Is a location structurally feasible? Are lightweight panels available? What are the building regulations, especially when considering installation on carports?

Another obstacle is power flexibility, as strengthening the power transmission and distribution network, and spreading the use of storage batteries become urgent tasks.

“Since electricity cannot be stored once generated, the challenge lies in efficiently distributing surplus electricity produced on facility rooftops. While feeding surplus electricity back into the grid is one solution, storing it in batteries will also become essential in the future. However, the high cost of battery storage remains a significant hurdle, making the enhancement of subsidy programs a pressing necessity.

“Additionally, managing electricity generation and storage requires mechanisms to control power demand. This includes redistributing electricity stored during the day for nighttime use and finding effective ways to utilise surplus power. These represent critical challenges moving forward.

“When it comes to rooftop solar panels, structural issues in building designs can make installations difficult. In this context, the future adoption of technologies like perovskite solar cells holds great promise.”

Consumer awareness is one of the concerns too. Even though requirements like TCFD (Task Force on Climate-related Financial Disclosures), awareness and interest in environmental measures have increased among listed businesses, domestic awareness of climate change still lags behind.

“The perception that renewable energy is expensive and that environmental efforts are difficult is still ingrained. Cost considerations and the time it takes to gain internal understanding are holding progress back. Even with no upfront investment through PPA, some cases face challenges in obtaining agreement on costs.”

This is why iGRID is offering more than just the installation of solar energy equipment. With the need to accelerate efforts to meet the nation’s goal of carbon neutrality by 2050, iGRID takes it upon themselves to close the knowledge gap.

“To achieve carbon neutrality by 2050, companies are required to do a lot, including embedding environmental knowledge and understanding within their organisations. To facilitate their transition to environmentally conscious organisations, iGRID started Kanseijuku (環生塾 in Japanese) in 2023 as a place to provide advanced knowledge and information on environmental issues and decarbonisation.

“About 20 to 30 representatives from companies and local governments participate, and we hold monthly lectures with university professors and experts on energy and the environment. In addition, we offer special web-based courses and site visits to enhance their expertise. Strengthening horizontal connections across industries also helps foster further environmental awareness.”

iGRID’s vision of a GX City for a sustainable future

It is reassuring to know that companies like iGRID understand the importance of the work they do and are passionate about creating a clean, sustainable future. Even better, they are building a vision that encompasses an inspiring use of energy, and we can’t wait to see it.

”We believe that local production and consumption of distributed renewable energy is the future of energy. That’s why we’ve proposed a business concept called “GX City,” where we are building systems that maximise the use of energy.

“Our initial step is to increase renewable energy through rooftop installations at corporate facilities. Using our energy platform, we are promoting services and projects that allow excess energy to be used locally, such as charging EVs or distributing it within the community.”