The first order tied to SolTech’s cooperation agreement in ShanXi Province, China

 

SolTech’s subsidiary, ASRE, has previously made public a five-year cooperation agreement (framework contract) with the city of JinCheng’s local government concerning the installation of solar energy units with a combined total capacity of 50 MW. The first order to evolve from this contract has now been signed with YangTai Group Ltd. covering the installation of solar energy units on the local government’s buildings that will generate a combined total production of 3 – 5 MW (dependent on the roof-suitability of the selected buildings). The installations are expected to be completed during the third quarter of 2016 and provide an annual income equivalent to approximately 5.1 – 8.5 MSEK ($622,00 –  $1,366,000 US)*. Over the course of the contract’s 20-year lifetime, total accumulated income is estimated to mount to approximately 102 – 170 MSEK ($12.4 – $20.7 million US)*.

The installations are estimated to produce circa 3,300,000 – 5,500,000 kWh, dependent on their final sum-total size. The customer is committed to buying all the electricity the system produces over a period of 20 years. Investment in the installations, which continue to be owned by ASRE, mounts to approximately 30 – 50 MSEK ($3.7 – $6.1 million US)*

* Based on an exchange rate of 8.2 SEK/USD

CEO Frederic Telander comments:

“The signing of a framework contract is big, and our judgment is that other provinces and sundry other customer bases take favorable note of it.  But it goes without saying that it the business generated within these frameworks that is decisive. We are in a good position to meet this year’s planned business goals, with the provinces of HeNan and ShanXi ‘s combined 15 MW capacity within five-year framework contracts that call for a total of 150 MW, and we look to the future with great confidence. “

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”.  Also included in the concern is the jointly owned (51%) Chinese company, ASRE (see below), as well as its wholly owned subsidiary 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 (51%) majority owner and Advanced Solar Power Hangzhou Inc. the (49%) minority 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. During the beginning period, this model has first been implemented in Hangzhou in the province of Zhejiang, with a view to thereafter expanding to other regions in China. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term 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 and operational capacity of approximately 230 MW, corresponding to a continuous yearly sales figure of approximately 400 MSEK ($48,800,000 US).

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