Risk to the Solar Power Generation Business from Changes to the FIT Scheme and Tighter Environmental Regulations
First written in FY2019. 4 of 13 entries say "Restated". Latest entry: 2026-10-29.
Toenec moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
The whole theme swung hardest in 2025: 5 of 14 companies on the "Worse" side.
0 other companies' latest entry also says "Cited as achieved".
- FY2026Settlement of litigation concerning withdrawal from the solar power generation projectAnnual report
「The Company had filed a lawsuit against TOKYO SANGYO CO.,LTD. on 28 April 2023 seeking restoration of the original condition and other measures in connection with the solar power generation project in Kannami, Tagata District, Shizuoka Prefecture, from which it had withdrawn as of 24 January 2023. With the involvement of the Nagoya District Court, a settlement with the company was reached on 30 April 2026.」
Litigation related to withdrawal from the solar power generation project was settled, and the Company expects to record settlement proceeds of ¥3,000 million as extraordinary income in the following consolidated fiscal year. - 2026-05-30AchievedGeneral Meetings of Shareholders
「With the involvement of the Nagoya District Court, a settlement was reached with the company on 30 April 2026. As a result, the Company expects to recognize ¥3,000 million as extraordinary income in the following consolidated fiscal year.」
For litigation concerning the solar power generation business plan from which the Company withdrew in 2023, this is the first disclosure of the settlement and the expected recognition of extraordinary income in the following consolidated fiscal year. - FY2025-H1RestatedAnnual report
「The Energy Business reported sales of ¥7,082 million, down 3.4% year on year, and segment profit (operating profit) of ¥2,238 million, down 18.4%, due mainly to the impact of solar power output curtailment.」
The Company has reconfirmed that output curtailment in solar power generation continues to contribute to lower revenue and earnings in the energy business. - FY2024-Q3RestatedAnnual report
「The Energy Business reported sales of ¥10,046 million, up 1.5% year on year, and segment profit (operating profit) of ¥3,191 million, up 7.2%, despite the impact of solar power output curtailment, due mainly to improved profitability in some businesses.」
While the impact of output curtailment on solar power generation has materialized, the energy business posted higher earnings due to improved profitability in some businesses. - FY2024-Q2RestatedAnnual report
「The Energy Business reported sales of ¥7,330 million, down 4.9% year on year, and segment profit (operating profit) of ¥2,741 million, down 8.3%, due mainly to the impact of solar power output curtailment.」
The Company has reconfirmed that the impact of output curtailment is an actual factor contributing to lower revenue and earnings in the solar power generation business. - FY2024-Q1Impact of output curtailment on solar power generation has materializedAnnual report
「The Energy Business reported sales of ¥3,412 million, down 15.0% year on year, and segment profit (operating profit) of ¥1,095 million, down 35.0%, due mainly to the impact of solar power output curtailment.」
For the solar power generation business, the impact of output curtailment is described as an actual factor contributing to lower revenue and earnings as a business-environment factor. - FY2023-Q3RestatedAnnual report
「The Company recognized an impairment loss on property, plant and equipment, including construction in progress, related to its planned solar power generation business because the outlook for the business became uncertain and the originally anticipated earnings could no longer be expected.」
The recognition of an impairment loss on property, plant and equipment for planned projects due to the uncertain outlook for the solar power generation business continues to be disclosed. - FY2023-Q2MaterialisedAnnual report
「The Company recognized an impairment loss on property, plant and equipment, including construction in progress, related to its planned solar power generation business because the outlook for the business became uncertain and the originally anticipated earnings could no longer be expected.」
For the solar power generation business, the outlook became uncertain and the originally anticipated earnings could no longer be expected, resulting in recognition of an impairment loss of ¥10,004 million on property, plant and equipment. The impact associated with existing risks in the solar power generation business has materialized. - FY2022WorsenedAnnual report
「However, if significant changes in the business environment, such as changes to the FIT scheme or tighter environmental regulations, result in substantial delays to or cancellation of projects under development, or if a major disaster or accident occurs that cannot be fully covered by insurance, this may affect the financial condition, operating results and cash flows of the Group. In addition, insufficient explanations to local authorities or residents regarding the business may result in reputational damage.」
In addition to FIT scheme changes, environmental regulations and disasters or accidents, the risk of reputational damage due to insufficient explanations to local authorities and residents has been expressly added. - FY2020WorsenedAnnual report
「However, if the business environment changes significantly due to changes to the FIT scheme, tighter environmental regulations or other factors, or if a major disaster or accident occurs that cannot be fully covered by insurance, this may affect the financial condition, operating results and cash flows of the Group.」
In addition to changes to the FIT scheme and tighter environmental regulations, major disasters and accidents that cannot be fully covered by insurance have been added as risks to the solar power generation business. - FY2019First statedAnnual report
「If the business environment changes significantly due to changes to the FIT scheme, tighter environmental regulations or other factors, this may affect operating performance and financial condition.」
As the solar power generation business expanded, changes to the feed-in tariff scheme and changes in the business environment resulting from tighter environmental regulations were described as separate risks.