Sumitomo Corporation of America (SCOA) has officially secured a tax equity investment to support its diverse portfolio of solar photovoltaic (PV) plus battery energy storage projects. Led by Pacifico Power, the investment will support a total of six projects that include 27 MW solar PV and 25 MWh battery storage located in Massachusetts and California, which will serve the power needs of approximately 4,000 U.S. households, as well as support the transition to a more sustainable energy system. The two Massachusetts projects, in particular, are designated as low-income community solar projects that have been developed under the Solar Massachusetts Renewable Target (SMART) program. Markedly enough, these projects provide access to the benefits of renewable energy and discounted electricity rates for local subscribers, especially those without the ability to install solar on-site. As for who is included in the stated contingent of community solar subscribers, they cover residential, commercial, and industrial (C&I) customers. Beyond that, Sumitomo has four behind-the-meter projects in California that integrate renewable energy into corporate sustainability strategies to help C&I customers pursue their environmental aim, while simultaneously reducing energy costs and enhancing reliability. Markedly enough, each of the projects here is well-equipped to provide tailored energy solutions through the efficient use of on-site solar, paired with battery energy storage systems (BESS) under a long-term energy service agreement.
To understand the significance of BESS, we must acknowledge how solar production is intermittent by nature, meaning it cannot always generate output consistently throughout the day due to limited hours of sunlight and other factors. However, when paired with BESS, it becomes possible to adjust the system’s yield according to demand, which in turn, improves efficiency and stabilizes the power transmission and distribution network. Hence, by integrating solar PV with BESS, Sumitomo is hoping to reduce carbon emissions, enhance grid resilience, and at the same time, foster sustainable economic growth in local communities.
The development in question delivers a rather interesting follow-up to recent projections that expect community solar market to continue upon its growth trajectory and expand from the current size of 6 GW to an estimated 14 GW by 2028. This would directly translate to an 8% annual growth.
“Sumitomo Corporation Group is committed to providing access to the benefits of renewable energy solutions for all communities,” said Sandro Hasegawa, Corporate Officer of Sumitomo Corporation, General Manager of Energy Innovation Initiative Americas at Sumitomo Corporation of Americas. “Sumitomo Corporation Group has the experience and resources needed to support and expand these solutions in the United States, and we are excited for these new projects to start generating clean electricity.”
More on what its collaboration with Pacifico Power will unlock for Sumitomo, it will help the latter identify further opportunities to expand the community solar business model in the U.S., Japan, and other countries in an effort to expand access to the immense benefits of renewable energy. On top of that, it will make significant contributions towards the company’s sustainable growth objectives, along with its goal to address material issues such as “Overcome Climate Change” and “Build Resilient and Prosperous Society”.
Founded in 1952, Sumitomo Corporation of Americas is the largest subsidiary of Sumitomo Corporation who, by the way, has more than 900 companies and 80,000 employees under its umbrella. You see, the subsidiary has, at the moment, offices in 9 major U.S. cities. Across these locations, the company is involved in activities related to Energy, Automotive, Social Infrastructure, Agri-food, Life Science, Construction and Transportation Systems, Real Estate, Mineral Resources, and more.
