Demonstration testing underway for establishing a solar panel reuse/recycling business- Aim is to develop a sustainable supply chain for solar panels -

Sumitomo Corporation, Sumitomo Mitsui Finance and Leasing Co., Ltd. (hereinafter, "SMFL"), SMFL MIRAI Partners Co., Ltd. (hereinafter, "SMFL MIRAI Partners"), ARBIZ Corporation (hereinafter, "ARBIZ"), and SMART Incorporated (hereinafter, “SMART”) have signed a memorandum of understanding on demonstration testing for establishing a reuse/recycling business for used solar panels.

Various renewable energies are being promoted in Japan to achieve a carbon-neutral society by 2050. Solar power generation is becoming particularly popular, accounting for 10.6% of Japan's power source mix in FY2022 and expected to account for 14-16% by 2030.

One of the challenges facing solar power generation is the disposal of solar panels used for power generation. Solar panels generally have a lifespan of 20 to 30 years and, since 800,000 tons – equivalent to about 40 million panels – are expected to be disposed of annually in the 2030s, a sustainable supply chain is needed to reduce waste through reuse and recycling.

With the conclusion of the aforementioned memorandum, the five companies will begin demonstration testing to establish a solar panel reuse and recycling business. The demonstration will focus on securing the used solar panels needed to develop a supply chain and putting in place sales channels for reused/recycled solar panels.

＜Respective roles of the five companies＞

＜Demonstration scheme＞

Sumitomo Corporation has set a goal of making its business activities carbon neutral by 2050, and is working to reduce CO2 emissions and expand the supply of renewable energy through its hydrogen, storage battery, electric vehicle, solar PPA and other businesses. Sumitomo Corporation is seeking in this demonstration to establish the reuse and recycling of solar panels and, by pursuing sustainable solar power generation, it will help mitigate climate change and achieve sustainable societies.

SMFL Group has spelled out its management philosophy and policies in the “SMFL Way” and, with one of the aims of “Our Vision” stipulated therein being “to tackle the SDGs head-on so that we will continue to be chosen by customers in the future,” the Group provides a variety of services to support achievement of the SDGs. In addition, it is undertaking initiatives designed to realize a circular economy in line with its medium-term management plan, which urges the Group to pursue the strengths of an operating company equipped with a wide range of financial functions to take on the challenge of solving social issues.

ARBIZ will contribute to the reduction of CO2 emissions and resource extraction by addressing the social issue of reusing and recycling end-of-life products, and will strive for a sustainable society by providing the material sorting technology needed for supply chains in a circular economy.

SMART will help bring about a recycling-oriented society by providing stakeholders with safety and peace of mind in dismantling and removing facilities and plants and through construction methods that make effective use of resources. In dismantling and removing renewable energy production facilities, SMART will adopt construction methods that protect the natural environment after removal.

Information on individual companies

Sumitomo Corporation

Location: Otemachi 2-3-2, Chiyoda-ku, Tokyo
Representative: Masayuki Hyodo, Representative Director, President and CEO

Sumitomo Mitsui Finance and Leasing Co., Ltd.

Location: Marunouchi 1-3-2, Chiyoda-ku, Tokyo
Representative: Masaki Tachibana, President and Representative Director

SMFL MIRAI Partners Co., Ltd.

Location: Marunouchi 1-3-2, Chiyoda-ku, Tokyo
Representative: Tatsuro Terada, President and Representative Director

ARBIZ Corporation

Location: Showa-cho 14-24, Minato-ku, Nagoya City, Aichi Prefecture
Representative: Dai Seta, Representative Director

SMART Incorporated

Location: Ushijima-cho 2-5, Nishi-ku, Nagoya City, Aichi Prefecture
Representative: Takuya Sano, President and Representative Director

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