Japanese solar trusts to list on Tokyo Stock Exchange’s new infrastructure market

Listing renewable energy funds on the public market will allow retail investors to directly invest in renewables for the first time. Credit: Ichigo

Four Japan-based solar power operators are about to sell the first shares on the Tokyo Stock Exchange’s new infrastructure market.

Sparx Group, Ichigo, Takara Leben and Renewable Japan all plan to list their solar plants as investment trusts and to pay dividends from the sale of electricity. The moves would open up a new source of funding for renewables firms, according to Reuters.

A 20-year exemption from corporation tax for renewable energy trusts will take effect in April when the Tokyo Stock Exchange’s infrastructure market will have been active for one year. The exemption applies as long as the trusts have operational plants by March 2017.

Listing renewable energy funds on the public market will allow retail investors to directly invest in renewables for the first time, but there are concerns about how much interest there will be since the government started lowering the subsidy for solar.

Tags: japan, tokyo stock exchange, finance

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