Cixi Huawei: The sixth customer in Ningbo garnered by Soltech’s subsidiary, ASRE.

 

ASRE has signed an order with Cixi Huawei Appliance Co. Ltd.  The order covers the installation of an 850 KW solar energy unit in Ningbo. Up and running, the installation is estimated to provide an annual income equivalent to approximately 1.48 MSEK ($774,000 US)*. Over the installation’s 20-year lifespan, accumulated income is estimated to mount to approximately 29.6 MSEK ($3.48 M US).                                                                                         

The installation’s annual production is estimated to be in the area of 858,550 kWh, with Cixi Hauwei committed to buying all the electricity the system produces over the contracted 20-year period. Investment in the installation, which continues to be owned by ASRE, amounts to approximately 8.74 MSEK ($1.0 M US). The installation is expected to be completed during the first quarter of 2017.

Ningbo, with a population of 7.6 million, is a vital port city located in Zhejiang Province, ASRE’s home base region. Over the last year, ASRE has contracted five other orders in Ningbo representing a total production capacity of 5.5 MW (megawatts). With the inclusion of this order, ASRE’s projected annual income from installations in Ningbo amounts to the equivalent of circa 11.78 MSEK ($ 1.39 M US), or total earnings of circa 235.6 MSEK ($27.5 M US) over 20 years.

*Based on an exchange rate of 8.5 SEK / US Dollar

CEO Frederic Telander comments:

”With the addition of our sixth customer in Ningbo, we are rapidly closing in on our sales goal. It obviously creates definitive practical advantages when projects are carried out within the same city but, above all, this promotes further sales. Customers are notably receptive to good examples.

ASRE’s foremost short-term goal is to sell 25 MW during 2016. Over and above the 150 MW frame-contract, in effect for the next five years, we now have 19.7 – 23.67 MW in sold volume this year; thereby meeting in the range of 78 – 94% of our year-end goal, with over four months of the year yet to go.

For more information, please contact:
Frederic Telander, CEO SolTech Energy Tel: 08-441 88 46 email:frederic.telander@soltechenergy.com

SolTech Energy in brief
SolTech Energy develops and sells a solar energy system based on research carried out over several years at Kungliga Tekniska Högskolan (KTH- Royal Institute of Technology). The system is a part of a building’s outer shell; specifically, roofs and/or walls formed of glass (panels or glass plates) that function as both weather protection and sun-catchers for the production of heat, hot water and electricity. The assortment of suitable glass also includes unique thin-film solar cells in black and/or semi-transparent glass – or as isolated glass modules in various sizes and formats that promote integration with a building’s outer shell.

SolTech Energy Sweden AB (publ.) is traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. Included in the concern are its jointly owned (51%) subsidiaries Advanced SolTech Sweden AB (publ.) ASAB, and Advanced SolTech Renewable Energy, Hangzhou Inc. (ASRE), as well as its wholly owned Wasa Rör T Mickelsson AB. The company’s Certified Advisor is G&W Fondkommission (securities broker). For more information see: www.soltechenergy.com

Investment in China
SolTech’s investment in China is carried out by a jointly owned company, Advanced SolTech Renewable Energy
(Hangzhou) Co. Ltd (ASRE), where SolTech is the majority (51%) owner and Advanced Solar Power Hangzhou Inc. the minority (49%) owner. The business model consists of having said jointly owned company, ASRE, responsible for the installation, ownership, and periodic maintenance of solar energy installations mounted on the roofs of customer-owned facilities. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term, 20-25 year contract to buy all the electricity and/or thermal heat the relevant unit produces. ASRE’s current income comes from the sale of electricity to customers, in combination with various forms of subsidies per produced kWh. The strategy is to build a backlog of orders for 2016 and beyond, with the goal of obtaining by the year 2019 an installed capacity of approximately 230 MW in full operation, generating current annual sales amounting to approximately 400 MSEK ($47,100,000 US).

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