Four Companies, Including Norinchukin Bank, Collaborate to Sell Electricity from Agricultural Solar Power Plant in Tea Fields Through Off-Site PPA

JA Mitsui Energy Solutions (a wholly owned subsidiary of JA Mitsui Leasing, located in Chūō-ku, Tokyo), Norinchukin Bank, Ryutsu Services (Soka City, Saitama Prefecture), and TEA ENERGY (Hamamatsu City, Shizuoka Prefecture) jointly announced the development of an agricultural solar power plant (solar sharing) on farmland used for growing matcha raw materials. This new venture aims to address challenges faced by the Japanese agricultural industry while contributing to the growth of the matcha export market.

In Shizuoka Prefecture, a combination of factors such as a decline in domestic green tea demand, lower prices, aging farmers, and a lack of successors has led to an increasing number of farmers abandoning agricultural activities, resulting in the expansion of abandoned farmland. However, amidst growing global demand for matcha—driven by increasing health consciousness in Europe and the US, as well as a rising interest in Japanese cuisine—the demand for matcha continues to thrive, positioning it as a crucial export product to sustain and expand Japan's tea industry.

The newly announced solar sharing project will focus on agricultural production, using solar panels as shading structures required in the matcha cultivation process. The initiative offers comprehensive support, from increasing production to securing sales channels, and aims to enhance the agricultural income of farmers. Additionally, the revenue from solar power generation will be used as agricultural lease payments and land rental fees, promoting a stable agricultural ecosystem within the region.

The business entity will be a Special Purpose Company (SPC) called "Chabata Solar," co-invested and established by the partnering companies. Utilizing an off-site Power Purchase Agreement (PPA) model, the project will supply electricity and its environmental value to consumers, with the sales revenue being returned to the farmers.

Looking ahead, the company plans to gradually develop agricultural solar power plants, with power sales expected to begin around February or March 2026.