An exclusive five-year cooperation agreement has been entered into with Jiangsu Siyang Administrative Committee of Economic Development Zone in Jiangsu Province, relating to the construction of 500 megawatts (MW) of solar energy capacity (100 MW annually for five years). The agreement is fully built out, without any subsidies from either the provincial or the central government, expected to generate annual revenues of approximately 465 MSEK. This corresponds to an annual return on invested capital of approx. 15.8%, which shows that the dependence on subsidies to achieve good profitability no longer exists for ASRE.
ASRE has already identified suitable roofs-tops corresponding to approximately 10 MW in the region. Installations in general are expected to produce approx. 1 kWh per installed watt/year and will, as before, be fully owned by ASRE. Customers enters into a 20-year contract and also commits to buy all the electricity that each installation produces.
The revenues in ASRE are fully consolidated in the SolTech Groups consolidated income statement.
CEO, Stefan Ölander in a comment:
– This is a very extensive cooperation agreement. To put this in perspective, Uppsala aims to have 50 MW of solar energy, one tenth of this agreement, installed in 2021. Not to be dependent on subsidies to achieve good profitability, also shows that our achievements within ASRE in China is both commercially and environmentally correct. With increasing volumes, the construction cost per watt will be reduced, whilst the solar cells will be more efficient and thus also produce more electricity and generate higher revenues.
For more information contact:
Stefan Ölander, CEO SolTech Energy Sweden AB (publ) Tel: +46 70 739 80 00. E-mail: firstname.lastname@example.org
The information in this press release is such that SolTech Energy Sweden AB (publ) must publish in accordance with EU Regulation No. 596/2014 on Market Abuse. The information was submitted through the above contact person’s agency for publication on March 27, 2019 at. 07:30 CET.
About SolTech Energy Sweden AB (publ)
SolTech Energy develops and sells aesthetic and building-integrated solar energy products for all types of real estate – commercial, public and residential. The products are part of a building’s outer shell in the form of a roof or a wall with integrated solar cells for the production of electricity. The Group also conducts operations in China where the business model consists of financing, owning and operating solar power plants on customers’ roofs and selling all the electricity that is produced. The Group also includes the subsidiaries Nyedal Solar Energy, the NP Group and Swede Energy, as well as the jointly owned companies ASAB in Sweden and ASRE in China. SolTech Energy Sweden AB (publ) is traded on First North at Nasdaq Stockholm under the short name SOLT and has about 15,000 shareholders. The company’s Certified Adviser Erik Penser Bank Telephone: +46 8 463 83 00. Email: email@example.com. More info at: www.soltechenergy.com
About the Chinese initiative
SolTech Energy’s investment in China is conducted in partnership with our partner, Advanced Solar Power Hangzhou Inc joint venture, Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd. (ASRE). The business model consists of ASRE financing, installing, owning and running solar energy installations on customers’ roofs. The customer does not pay for the facility, but instead undertakes to buy all electricity produced by each plant under a 20-25 year contract. ASRE’s current income comes from the sale of electricity to the customers and from various forms of grants per kWh produced. The focus now is on building an order backlog for 2019 and onwards with the goal of having an installed capacity of 605 megawatts (MW) in 2022.