Giga Solar Materials expects return of 10-12% on investment in PV power-generating station in Japan

PV conductive paste maker Giga Solar Materials estimates 10-12% for return on investment of JPY660 million (US$5.5 million) to set up a PV power-generating station with installation capacity of 2MWp in Okayama Prefecture, western Japan, based on a feed-in tariff rate of JPY36/kWh and 30% of the investment from equity funds, according to the company.

The PV power-generating station will be completed in the first quarter of 2016, Giga Solar said.

Giga Solar has made non-operating investment in several other PV power-generating stations in Japan and Taiwan. Giga Solar has invested in construction of a 17MWp PV power-generating station in Fukushima Prefecture, northeastern Japan, and a 2.5MWp one in Ciba Prefecture, eastern Japan, with the former already starting generating 20 million kWh of electricity a year at a feed-in tariff rate of JPY43.2/kWh beginning May 2015.

Giga Solar in July 2015 also acquired a 5.4MWp PV power-generating station in Fukuoka Prefecture, southwestern Japan, which went on-grid at a feed-in tariff rate of JPY40/kWh at the end of August.

Giga Solar has so far brought in total revenues of NT$40 million (US$1.23 million) a month from sales of electricity generated by the two stations.

Several stations, including the one in Okayama, with total installation capacity of 7MWp may go on grid in 2016, Giga Solar indicated.