Sumitomo invests in solar and storage projects to boost U.S. renewable energy access

Sumitomo Corporation, through its subsidiary Sumitomo Corporation of Americas, unveiled a significant tax equity investment in a portfolio of solar photovoltaic (PV) plus battery energy storage systems (BESS), spearheaded by Pacifico Power. This marks Sumitomo Corporation Group’s inaugural foray into distributed generation, underscoring its expansion within the Green Power Platform business.

The investment encompasses six projects totaling 27 MW of solar PV and 25 MWh of battery storage located in Massachusetts and California. These projects are poised to meet the energy needs of approximately 4,000 U.S. households and support the transition to a more sustainable energy system.

Particularly notable are the two Massachusetts projects, developed under the Solar Massachusetts Renewable Target (SMART) program, designated as low-income community solar projects. These initiatives are designed to provide access to renewable energy and discounted electricity rates for local subscribers, including those unable to install solar panels on-site. This model benefits residential as well as commercial and industrial (C&I) customers. The community solar market is anticipated to grow from 6 GW to an estimated 14 GW by 2028, reflecting an annual growth rate of 8%.

The portfolio also includes four behind-the-meter projects in California aimed at supporting C&I customers. These projects integrate renewable energy into corporate sustainability strategies, reducing energy costs and enhancing reliability. Each project offers customized energy solutions through efficiently paired on-site solar and BESS under long-term energy service agreements.

Solar production is inherently intermittent, facing limitations due to sunlight availability and other factors. By pairing solar PV with BESS, these projects can adjust output according to demand, thereby improving efficiency and stabilizing the power transmission and distribution network. This integration is crucial for reducing carbon emissions, enhancing grid resiliency, and promoting sustainable economic growth in local communities.

Through this investment, Sumitomo Corporation Group is not only committing to environmental stewardship but also planning to expand the community solar business model in the U.S., Japan, and other countries. This approach aims to broaden access to renewable energy, reflecting Sumitomo’s commitment to tackling climate change and fostering a resilient, prosperous society.

Sandro Hasegawa, Corporate Officer of Sumitomo Corporation and General Manager of Energy Innovation Initiative Americas, highlighted the strategic importance of these initiatives: “Sumitomo Corporation Group is committed to providing access to the benefits of renewable energy solutions for all communities,” he said. “We have 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.”