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Honda set to become 1st Japan carmaker to sell solar power

23/05/2013

Honda Motor Co. is getting a jump on other Japanese carmakers by becoming the first to sell lucrative electricity from renewable energy sources to utilities by installing solar panels atop its new factory complex.

880a9dcfc_images_10.jpgHonda Motor Co. is getting a jump on other Japanese carmakers by becoming the first to sell lucrative electricity from renewable energy sources to utilities by installing solar panels atop its new factory complex.

The company said April 16 it plans to install 20,000 panels on the rooftops of its factory buildings in Yorii, Saitama Prefecture.

The plant will begin assembling vehicles in July, and solar power generation is expected to start in August.

The panels are capable of generating about 2.6 megawatts, which can supply 459 households. The total wattage can cover 3.7 percent of the factory's power needs when it is in full operation. But Honda plans to sell all electricity generated to a utility through the new feed-in-tariff system, except when needed during a natural disaster and other emergencies.

The government incentive program was introduced last summer to promote renewable energy sources such as solar, wind and geothermal energy. Utilities are obligated to buy electricity generated from these environmentally friendly sources at above-market rates for at least 10 years, encouraging businesses and individuals to enter the market.

Honda will also equip its Yorii factory with a natural gas co-generation system that can cover up to 30 percent of power needed at the facility.

The new systems have been put in place after a shortfall in the power supply following the 2011 Great East Japan Earthquake, tsunami and accident at the Fukushima No. 1 nuclear power plant.

In summer 2011, the auto industry switched to operating factories on Saturdays and Sundays and closing on two weekdays instead to redistribute energy use to off-peak periods.

But automakers did not return to weekend shifts the following summer due to the heavy burden the schedules placed on employees' personal lives and parts suppliers.

Many carmakers have since moved to reinforce their in-house power generation capabilities to cope with the potential power shortage caused by a natural disaster.

The factory in Yorii will be Honda's most advanced. Workers there will assemble a fully redesigned version of the Fit subcompact, which is expected to start rolling out as early as autumn.

The factory has an annual output capacity of 250,000 vehicles.


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