The deal is part of GE’s plan to invest more than $1bn a year in renewable energy projects globally.
Toyo Engineering has started construction on the project, dubbed Kumenan, located in the prefecture of Okayama.
Yingli Green Energy is supplying PV modules for the project, which is anticipated to be operational in the first quarter of 2016.
A regional utility will buy the power generated from the plant under a 20-year power purchase agreement.
GE said financing for the project was made possible via a non-recourse project finance basis and also due to a JPY11bn ($107.2m) loan from the Bank of Tokyo-Mitsubishi UFJ and the Chugoku Bank.
GE Energy Financial Services president and chief executive officer David Nason said Kumenan project helps Japan meet its renewable energy targets and sets the stage for the company’s future investments.
"Our investment in Kumenan advances our global growth into new markets with a strong risk-return profile," Nason added.
GE Energy Financial Services has to date made investment commitments of $1.8bn in over 1GW of solar PV projects globally.
The business unit also plans to finance Japan’s largest solar project in Setouchi in order expand its presence in the region.
Image: The 32MW Kumenan solar PV project is located in the prefecture of Okayama. Photo: Courtesy of graur codrin/FreeDigitalPhotos.net.
