New order affirms a strong close to the 2nd Quarter for Soltech’s Chinese subsidiary ASRE.

 

ASRE has signed an order with Ebara Great Pumps Co. Ltd. for the installation of a solar energy unit in Ruian City, Zhejiang Province. The installation will have an energy production capacity of 2 MW (megawatts) estimated to generate an annual income of approximately 3,4 MSEK ($415,000 US)*. Over the contract’s 20-year lifespan, accumulated income is estimated to mount to approximately 68 MSEK ($8.3 M US).

The installation is estimated to produce circa 2,000,000 kWh. The customer is contractually committed to buying all the electricity the system produces over 20 years. Investment in the installation, which continues to be owned by ASRE, amounts to approximately 20 MSEK ($2.4 M US). Plans call for the installation to be completed during the 4th quarter of 2016.

*Based on an exchange rate of  8.2 SEK/ US dollar

CEO Frederic Telander comments:

  • ASRE’s goal is to sell and install 25 MW during 2016. In addition to the 150 MW cited in the framework contract that spans 5 years, we now have a sold volume figure of 18.57 – 22.57 thus far, meaning that approximately 74 – 90% of this year’s goal has already been met at its half-turn. We have circa 2.5 MW coupled to the main net, which is currently generating positive cash flows, and a further circa 6 MW that we estimate will be fully coupled by end of September. With the financing funds provided by the bond issue, we are now constructing installations during the summer in accord with earlier received orders. Our goal of having an installed capacity of 230 MW by 2019 stands fast.

For more information, please contact: Frederic Telander, VD 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%) Chinese subsidiary ASRE, see below, as well as Advanced SolTech Sweden AB (publ.) ASAB, whose operative mission is to finance the solar energy installations carried out by ASRE in China. The remaining joint ownership (49%) of ASRE and ASAB is held by ASP. Also included in the concern is 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 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 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 ($48,800,000 US).

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