POWER CONTINUE, a Fixed-Price Power Conditioner Rental Service Providing One-Stop Support for Long-Term Solar Power Generation

　

　

　

From left: Mr. Kanamori and Ms. kambayashi from OMRON Social Solutions and Mr. Takahashi from Tokyo Century

　

Challenges in Ensuring Long-Term Stable Solar Power Generation

――What Challenges do solar power generation operators encounter in maintaining stable, long-term operations?

Kambayashi: Many of our clients have installed solar power systems on mountainside properties, where lightning strikes are by far the most common cause of breakdowns. They sometimes reach out to us only when they notice a drop in electricity generation, long after the initial damage has occurred. However, by the time they contact us, identifying the cause becomes much more difficult.

 

Takahashi: Unfortunately, a lot of power generation operators are facing a frustrating problem: the manufacturer and distributor for repair and parts replacement have already gone out of business, leaving them to find a new company to work with.

 

Kanamori: Power conditioners in solar power generation systems have an operating life of about ten years. Malfunctions caused by deterioration after prolonged use can impact profits from electricity sales and lead to significant repair costs once the warranty expires. They must therefore be replaced at specific intervals, and the associated high costs are undoubtedly a burden for power generation operators. To address this, we created the POWER CONTINUE service.

　　

　

　

　

Kanamori: While long-term power generation businesses require their power conditioners to be replaced periodically,
some customers seek flexibility in operation based on the remaining duration of their electricity sales agreements.

No Initial Costs, and Fixed-Price Service to Alleviate the Burden of Long-Term Operation

――Could you provide more details about the POWER CONTINUE service and explain how it can address the challenges faced by solar power generation operators?

Kanamori: There are no initial costs for replacing power conditioners, and they are rented out at a fixed price. These are the first initiatives of their kind in the industry. While power conditioner were typically purchased, one manufacturer took the lead in launching a rental service, which has had a significant impact on the market.

Kambayashi: It’s not uncommon for these operators to invest tens of millions of yen to start their business, so the additional cost of replacing power conditioners can put a strain on their business. The ability to spread out customer payments is another major benefit that has been well-received.

Takahashi: In addition to the financial benefits, POWER CONTINUE also includes maintenance service and property insurance, making it a unique one-stop solution for ensuring stable, long-term operation while securing revenue from electricity sales.

　

――OMRON Social Solutions is one of Japan’s leading manufacturers of power conditioners. What are its key technical strengths?

Takahashi: I’ve often heard customers express their surprise not only at the low failure rate but also at the high power generation efficiency, even during weaker sunlight in the morning and evening hours, or on cloudy days.

Kanamori: Since our founding, our strength has been in power system connection technology, and we’ve worked on a wide range of equipment that supports social infrastructure, such as automatic ticket gates at train stations and ATMs. I believe the performance and quality of our power conditioners truly reflect the technological capabilities we have cultivated over the years.

Kambayashi: As a manufacturer, we always have the necessary parts and materials for repairs. We can also quickly provide the latest, highly efficient models to replace power conditioners, and this level of responsiveness is definitely an advantage. With 140 support centers nationwide, we have a system in place to immediately dispatch a team to a site if an issue arises. We believe this is a major strength that sets us apart from our competitors.

　

Kambayashi: Thankfully, there have been cases where users of OMRON’s power conditioners, recognizing their high quality, have started using POWER CONTINUE.

Shifting from Product Sales to Service Sales Through Directly Connecting with Customers

――Could you tell us about the background behind the launch of POWER CONTINUE? How did this service come into being?

Kambayashi: Solar power generation is an effective solution to power shortage, but it’s also an investment that can generate revenue from selling electricity. Since Japan’s FIT*2 policy was enacted in 2012, many corporations and sole proprietors have ventured into solar power generation businesses. The FIT policy guarantees that electricity can be purchased at a fixed price for up to 20 years. However, power conditioners, which generally have a 10-year warranty period, must be replaced at least once during this 20-year span. Since before the service was launched in 2021, our company had been actively discussing how to address this demand as a manufacturer.

Kanamori: Until then, we had primarily been selling our power conditioners through distributors, but the pace of business expansion was slow, and we struggled to maintain customer relationships. As we were exploring new ways to directly connect with them, we received a proposal from Tokyo Century for a scheme with zero initial costs and a fixed-price rental service.

Takahashi: Our proposal was based on the Tokyo Century Group’s existing financing schemes, so it seemed to align well with the direction that OMRON Social Solutions was exploring. What’s more, we see POWER CONTINUE as a collaborative project that truly embodies our corporate slogan, “Solutions to your Pursuits.” We also recognize that we’re helping OMRON Social Solutions address the new challenge of shifting from distributor sales to direct sales, and we’re eager to continue working on this moving forward.

*2 Feed-in tariff is a fixed-price purchase policy for renewable energy, where electric power companies are obliged to purchase electricity generated by solar and other renewable energy sources at a fixed price. The maximum purchase period is 20 years.

　

Takahashi: The fixed-price rental of power conditioners was a new approach for us, even though we’d been involved in the solar power generation business for some time. I believe it’s significant that the options for our renewable energy-related business have now expanded.

　

――What changes has the shift to direct sales brought about at OMRON Social Solutions?

Kanamori: Since many customers considering POWER CONTINUE are sole proprietors, we’ve gained valuable B2C knowledge in both marketing and sales activities.

Kambayashi: As our sales approach has shifted from selling products to selling services, employee awareness has undergone a dramatic change. Instead of simply providing equipment, we now actively acquire knowledge in related areas to offer services and solutions to our customers. This shift in mindset has also helped us gain the trust of the entire organization.

　

Exhibition booth at the Asset Management EXPO

Continuing to Evolve Services While Deepening Cooperation

――Thank you for all the details. Finally, what are your aspirations for the future?

Kambayashi: Solar power generation is not just about earning revenue from electricity sales. There’s also demand for private consumption, and we must consider the possibility that customers may want to sell their power generation facilities in the future. We aim to develop POWER CONTINUE by exploring all possibilities related to generating, using, and distributing electricity.

Kanamori: Our customer surveys have shown that lots of customers are concerned about the future operations of their solar power generation systems. By shifting from distributor sales to direct sales, we’ve been able to gather more specific feedback from customers. Looking ahead, we’ll continue to listen to each and every voice, incorporating their feedback to further enhance and expand our services.

Takahashi: For POWER CONTINUE, we are using an online platform to reduce the administrative burden on customers, such as for issuing estimates and handling payment procedures. Moving forward, we’d like to build a solid operational system that can manage even more projects. Moreover, rather than simply focusing on replacing power conditioners, we will continue to deepen our collaboration with OMRON Social Solutions to create new added value and provide services that anticipate future demand.

　

　
　

Note: The contents of the article and the position titles are current as of the date posted.

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