What Tess does

Tess Engineering Co., Ltd. is a Japan-based engineering, procurement, and construction (EPC) firm founded in May 1979 in Osaka, specializing in energy conservation and renewable energy infrastructure. The company designs, procures, and constructs cogeneration systems, solar power generation systems, energy storage / grid-mounted batteries, LNG satellite systems (fuel conversion), and utility facilities for factories and businesses. Its sold track record includes 731 solar systems (~1,105 MW), 1,481 cogeneration units (~1,378 MW), 59 on-site PPA installations (~68 MW), and 86 LNG satellite systems (8,070 kL). The business extends beyond construction into recurring revenue streams: 24-hour remote monitoring of 1,015 facilities (as of March 2026), ongoing O&M services, aggregation services for distributed energy resources, retail electricity supply (902 demand locations as of December 2023, covering all 9 Japanese power areas), on-site Power Purchase Agreements, environmental value trading (including I-REC), and subsidy application support. A proprietary cloud-based platform, TESS WebView, enables remote monitoring, automated reporting, and alarm distribution across the installed base.

Tess generates revenue through three mechanics: (1) one-time EPC project revenue where customers own and operate equipment after installation; (2) long-term recurring subscription revenue via on-site PPA, retail electricity supply, O&M contracts, and 24-hour remote monitoring; and (3) transaction-based revenue from environmental value trading and aggregation/market participation services. Pricing is project-quote based for EPC and PPA, while retail electricity plans include market-linked (JEPX-tied every 30 minutes), fixed-price, and renewable-energy options. Tess serves enterprise customers across manufacturing, logistics, food and beverage, and engineering verticals, including named logos such as Meiji, JFE Engineering, Hitachi Construction Machinery, Kamigumi, Toyo Seikan, and Ricoh Leasing. The company is a wholly-owned subsidiary of Tess Holdings Co., Ltd. (Tokyo Stock Exchange Prime Market, ticker 5074). It operates from 7 Japanese offices (Osaka, Tokyo, Sendai, Nagoya, Hiroshima, Fukuoka plus a satellite office) and reported revenue of ¥26.6 billion for the fiscal year ending June 2025 with 338 employees.

The strategic posture in 2025-2026 has shifted toward grid-scale battery storage and FIP (Feed-in Premium) solar conversion, executed through partnerships with Tokyo Century (Fukuchiyama grid storage project, June 2026), Daiwa Energy & Infrastructure, BuddyNet (April 2026), and a joint venture with A&Tm (Tokyo Century subsidiary, December 2025) for solar O&M. These moves broaden Tess beyond its historical EPC-and-cogeneration base into recurring, capital-intensive energy infrastructure services. The company's competitive posture is built on 46+ years of technical experience, vendor-independent equipment selection, nationwide geographic coverage via 7 offices and 9 power areas, and an integrated EPC-to-O&M service model.

Name

Tess

Legal name

Tess Engineering Co., Ltd.

Website

https://tess-eng.co.jp

Company type

Private

Founded year

1979

Operating status

Operating

Headcount range

101–250 employees

Short description

Tess Engineering Co., Ltd. is a Japanese EPC firm founded in 1979 that designs, builds, and maintains energy conservation and renewable energy systems — including cogeneration, solar, battery storage, LNG satellite, and utility facilities — for enterprise factories and businesses across Japan, supported by retail electricity supply, O&M, and on-site PPA services.

Ownership category

akta.pro rank

Product category

Renewable Energy EPC Services

NAICS

Engineering Services (54133), Electric Power Generation, Transmission and Distribution (2211)

SIC

Services-Engineering Services (8711), Services-Engineering, Accounting, Research, Management (8700)

akta.pro primary industry

Construction Management & General Contracting (EPCM, Scheduling, QA/QC, HSE) (EUAMAFAJ)

akta.pro secondary industries

C&I Energy Optimization, Peak Shaving & Demand Charge Management Software (EUAFAKAE), Asset Management & Owner’s Engineering (Lifecycle Strategy, Budgeting, Technical Due Diligence) (EUAMAGAJ), Energy Systems & Power Engineering Consulting (BPAHAIAG)

Keywords

• Renewable energy EPC
• Energy storage systems
• Solar power systems
• Cogeneration systems
• Retail electricity supply

Headquarters

HQ city

Osaka

HQ country

Japan

HQ region

Asia

Offices7 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Supply Chain, Operations, Personnel, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. EPC (Engineering, Procurement, and Construction): One-stop service covering design, procurement, and construction of energy systems including energy storage systems, solar power generation systems, cogeneration systems, LNG satellite systems, and utility facilities. Revenue recognized upon project completion with customers owning and operating equipment.
2. Retail Electricity Supply: Supply of electricity to customers as a retail electricity provider (Registration number A0065). Revenue generated from electricity sales based on consumption. Offers market-linked menus, fixed-price menus, and renewable energy options. Active in 9 power areas across Japan serving 902 demand locations as of December 2023.
3. 24-Hour Remote Monitoring Service: Continuous remote monitoring of energy facilities 24/7, 365 days a year. Monitoring of cogeneration systems, LNG satellite systems, utility facilities, solar power generation systems, and energy storage systems. Engineers stationed at ICT Solutions Center providing online monitoring and alarm response advice.
4. Operation & Maintenance (O&M): Ongoing operation management, inspection, and maintenance services for energy facilities. Includes planning of supply and demand, operation management duties, safety management, maintenance work, and improvement proposals. Services provided at factories, businesses, renewable energy power plants, and energy storage facilities.
5. Aggregation Services: Services combining private power generation facilities and distributed energy resources (DERs) such as energy storage systems. Includes supply and demand management operations, renewable energy aggregation operations, and grid storage battery operation business. Revenue from electricity market participation, supply-demand adjustment, and capacity market participation.
6. On-site PPA (Power Purchase Agreement): Company installs and owns solar power generation systems on customer property, supplying electricity to customers over long-term contracts. Customers pay monthly fees with no initial investment required. Combines zero initial investment with long-term cost stability and environmental value.
7. Environmental Value Trading: Trading of environmental value associated with electricity through non-fossil fuel certificates and renewable energy certificates including I-REC (international renewable energy attribute certificate). Revenue from certificate sales to companies seeking to demonstrate decarbonization efforts.
8. Subsidy Application Support: One-stop support for subsidy and grant programs from selection through application, reporting, and results documentation. Services include equipment specification development and construction plans meeting subsidy requirements.

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels6 records

Core offering

Tess Engineering provides energy engineering and energy service solutions for business customers in Japan. Its core offerings include EPC for energy storage, solar power, cogeneration, LNG satellite and utility facilities, plus operation and maintenance, on-site PPA, retail electricity supply, aggregation, environmental value trading, and subsidy support.

Product overview

Tess Engineering offers an integrated portfolio of energy solutions comprising three main service layers: (1) EPC services for energy equipment including solar power generation systems, energy storage systems (grid-mounted batteries, FIP conversion + storage, and factory/business storage), cogeneration systems, LNG satellite systems, and utility facilities; (2) Energy services including on-site PPA (Power Purchase Agreement), retail electricity supply through new electricity providers, environmental value trading, and aggregation services; and (3) Operation and maintenance services including 24-hour remote monitoring, energy management services using proprietary TESS WebView system, and subsidy application support. The company operates as a vendor-independent engineering firm providing one-stop solutions from equipment installation through long-term operation and maintenance.

Differentiator

Problem solved

Functional benefit

Products and services

• Energy Storage System (Grid-mounted Batteries)
• FIP Conversion + Battery Storage System
• Factory/Business Battery Storage System
• Solar Power Generation System
• Cogeneration System (CGS)
• LNG Satellite System (Fuel Conversion)
• Utility Facilities
• On-site PPA
• New Electricity Providers (Retail Electricity Supply)
• Operation & Maintenance (O&M)
• 24-Hour Remote Monitoring Service
• Energy Management Services
• Aggregation Service
• Environmental Value Trading
• Subsidy Application Support

Quantifiable outcome

• 731 solar power generation systems delivered with combined capacity of approximately 1,105MW
• +6 more outcomes

Named customers10 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Six partnerships are on record, tiered core and minor.

• Tokyo Century CorporationcoreStrategic or Co-development Partner · 16 June 2026Tokyo Century and Tess Holdings launched a large-scale grid-use energy storage plant project in Fukuchiyama City, Kyoto Prefecture. This represents a significant partnership for grid-connected battery storage development and operation.
• BuddyNet Co., Ltd.coreStrategic or Co-development Partner · 10 April 2026BuddyNet Co., Ltd. and Tess Engineering Co., Ltd. entered into a business alliance agreement for the development of energy storage facilities. This partnership focuses on collaborative development of battery storage projects.
• A&Tm (consolidated subsidiary of Tokyo Century)coreStrategic or Co-development Partner · 24 December 2025Tess Engineering launched a joint venture with A&Tm, a consolidated subsidiary of Tokyo Century, in the operation and maintenance (O&M) of solar power plants. This partnership enhances O&M capabilities for solar power assets.
• Daiwa Energy & Infrastructure Co., Ltd.coreStrategic or Co-development PartnerTess Holdings Co., Ltd. and Daiwa Energy & Infrastructure Co., Ltd. are collaborating to commercialize grid-based battery storage projects. Partnership leverages Tess Engineering's EPC capabilities and operational expertise combined with Daiwa's energy infrastructure focus.
• Limited Liability Company formed by Tokyo Century CorporationcoreStrategic or Co-development PartnerReceived a large order for grid-mounted battery storage from a limited liability company formed by Tokyo Century Corporation. This represents significant order volume and partnership importance in the battery storage segment.
• SCSK CorporationminorGTM or Marketing PartnerI-REC (international renewable energy attribute certificate) trading through SCSK Corporation. SCSK's annual report highlights Tess Engineering's trading record, which was selected as 'Best Market Player of 2025', demonstrating expertise in renewable energy certificate trading.

Scale indicators11 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Kyudenko: Large electrical infrastructure and energy services company headquartered in Kyushu with nationwide renewable EPC and O&M operations. Comparable regional peer with similar EPC-plus-O&M-plus-energy-services structure serving Japanese enterprise customers.
• Tokyo Gas Engineering Solutions: Engineering subsidiary of Tokyo Gas providing EPC for cogeneration, gas-fired generation, and energy-saving solutions for industrial and commercial customers in Japan. Closely comparable to Tess on the EPC-plus-energy-services model for industrial customers.
• Eurus Energy Holdings: Independent power producer developing wind, solar, and battery storage projects in Japan and globally. Comparable for renewable project development plus grid battery participation, an adjacent competitive set to Tess's emerging battery and FIP conversion offerings.
• Sharp Energy Solutions: Solar PV equipment manufacturer and EPC provider serving Japanese commercial, industrial, and utility-scale customers. Comparable for Japanese rooftop and industrial solar EPC, and overlaps in the on-site PPA model.
• NTT Facilities: Subsidiary of NTT providing energy facility engineering, O&M, and energy management services for telecommunications and large enterprise customers. Comparable as a multi-decade Japanese energy services firm with both EPC and recurring O&M/EMS offerings.
• Kandenko: Major Japanese electrical construction company with growing presence in renewable EPC, energy storage, and energy services for enterprise customers. Comparable for the integrated electrical construction, solar EPC, and recurring services model.
• JFE Engineering: Engineering arm of JFE Group providing EPC for energy facilities including cogeneration, biomass, and renewable energy plants. Comparable as a major industrial energy EPC contractor in Japan (also a Tess customer in the cogeneration case studies).

Emerging players

• SoftBank Energy: Renewable energy and battery storage developer controlled by SoftBank Group, focused on solar PPA, virtual power plants, and grid battery storage in Japan. Comparable for the renewable PPA and battery aggregation business Tess is targeting.
• Pacifico Energy: Japanese renewable energy developer with focus on solar PPA, battery storage, and grid-scale projects. Comparable for the on-site PPA, battery storage, and renewable project development business lines Tess is scaling.

Broad incumbents

• Mitsubishi Heavy Industries (Power Systems): Major Japanese industrial conglomerate with a leading power generation EPC business covering gas turbines, cogeneration, and increasingly hydrogen/carbon-capture. Comparable for power generation EPC and equipment supply, though at materially larger scale and broader portfolio.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/@tess4490/featured

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Tess