For Immediate Release
September 21, 2017
LIXIL Corporation

LIXIL and TEPCO Energy Partner Establish Joint Venture to Promote Eco -Friendly Net
Zero Energy Houses (ZEH)
LIXIL TEPCO Smart Partners to offer first-of-its-kind service in JapanTokyo, Japan – LIXIL Corporation (LIXIL) and TEPCO Energy Partner, Incorporated (TEPCO EP) haveestablished a joint venture company, LIXIL TEPCO Smart Partners, Inc., to promote the building of
eco-friendly net zero energy houses (ZEH)1 in Japan. Business operations will begin on October 1,2017.
The joint venture company will launch a new packaged service that provides photovoltaic power
generation systems and electric power retail services for consumers who buy LIXIL housingmaterials and products for ZEH, including high-performance windows, doors, and building
structures. This type of service is the first of its kind in Japan.

LIXIL TEPCO Smart Partners, Inc. logo

1

A Net Zero Energy House (ZEH) is a house with net zero annual primary energy consumption, achieved by enhancing

the efficiency of thermal insulation and equipment (energy conservation), and generating energy through photovoltaicpower generation systems and other means (energy creation).

1While energy conservation efforts in Japan are progressing, household energy consumption
continues to rise. The Japanese government has set a goal for more than half of all newlyconstructed detached houses to be ZEH by 2020, and almost all newly-built houses by 2030.
However, ZEH accounted for only about 4.3%2 of newly built detached houses in fiscal 2016,indicating a low rate of adoption.
Aiming to create comfortable and healthy living spaces and supporting efforts to curb global
warming, LIXIL and TEPCO EP began discussions in June 2017 on how they can use their respective
strengths to provide new products and services that promote the wider adoption of ZEH. As aresult of these discussions, LIXIL and TEPCO EP will combine their resources and know-how toestablish a business model that minimizes the higher construction costs for ZEH, one of the main
issues limiting their adoption. This includes leveraging LIXIL’s rich lineup of materials and fixtures
for homes - from windows with high thermal insulation to water-conserving toilets andphotovoltaic power generation systems - and TEPCO EP’s wide-ranging expertise and technologies,
which it has developed through providing energy-related services to approximately 20 million
customers, primarily in Tokyo and the surrounding Kanto region.
Through the new joint venture company, LIXIL and TEPCO EP will provide a wide range of services
to customers who are considering building a new house. This includes providing loans payable ininstallments for photovoltaic power generation systems to customers building a ZEH equippedwith designated LIXIL products. As part of this model, the customer will assign the right to sellelectricity generated by the photovoltaic system to the new joint venture company. The value ofthe electricity sold will, in turn, offset the customer’s monthly loan installments in whole or in part.
Through this business model, the initial cost of the customer’s solar power system whenpurchasing a ZEH will be reduced. In addition, the new joint venture company will also provide
grid-sourced electricity at lower cost to homes where designated LIXIL products have been
installed, further promoting the adoption of ZEH.
Through LIXIL TEPCO Smart Partners, LIXIL and TEPCO EP will promote the adoption of ZEH,
creating comfortable and healthy living spaces, and support efforts to curb global warming.

2

Calculated based on the documents from Sustainable Open Innovation Initiative and Ministry of Land, Infrastructure

and Transport2

-Ends-Attachment: Summary of the New Joint Venture Company
Name

LIXIL TEPCO Smart Partners Inc.

Head Office

FUJISAKI KAMEIDO Higashiguchi Bldg., 8F
6-57-20 Kameido, Koto-ku, Tokyo

Representative

Hide Kashiwagi

Established

September 1, 2017

Capitalization
Investment Ratio

JPY 450 million
LIXIL: 60%, TEPCO Energy Partner: 40%

Business Outline

Electric power retail business, sales of photovoltaic power generation
systems3Name

LIXIL Corporation

Head Office

Kasumigaseki Building, 36F
3-2-5 Kasumigaseki, Chiyoda-ku, Tokyo

Representative

Kinya Seto

Established

October 1, 2001

Capitalization

JPY 34.6 billion

Business Outline

Manufacture and sale of construction materials and equipment,
and related services

Name

TEPCO Energy Partner, Incorporated

Head Office

New Pier Takeshiba North Tower
1-11-1 Kaigan, Minato-ku, Tokyo

Representative

Toshihiro Kawasaki

Established

April 1, 2015 (Name changed on April 1, 2016)

Capitalization

JPY 10.0 billion

Business Outline

Electric power retail business, gas business4