Renova secured 22.3 billion yen in project finance through its unit First Solar Power LLC for the development of about 1,300 small-scale distributed solar power plants totaling 170MWDC, the company announced on December 4, 2025.
According to the statement, Sumitomo Mitsui Trust Bank served as the facility’s arranger. Two additional senior lenders, namely The Bank of Fukuoka and Resona Bank, acted as a joint arranger and a co-arranger, respectively. Sumitomo Mitsui Trust Panasonic Finance provided mezzanine debt. The loan is to be repaid by the end of 2047 and the Renova unit will be required to maintain a debt service coverage ratio of 1.05 or higher throughout the period.
The output of the projects, which will be built on abandoned farmland and other unused land, will be sold through PPAs. To date, Renova has secured seven solar deals totaling about 207MWDC and, as of the end of September 2025, completed 76.6MWDC of the contracted capacity. Most recently, in October 2024, it disclosed an 18MWAC/36MWDC virtual PPA with an unnamed offtaker. It also signed agreements with Murata Manufacturing and Tokyo Gas, among others.
Under its Medium-Term Management Plan 2030, the TSE Prime-listed renewables company targets a 5GW (3.5GW adjusted for ownership share) portfolio of operational and under-construction projects by FY2030. Adjusting to changes in the industry, it has been expanding from building large-scale solar and biomass projects under the feed-in-tariff (FIT) scheme to also develop portfolios of distributed solar assets, wind farms, and grid-scale storage facilities.
