New order for SolTech’s subsidiary, ASRE, in China

 

ASRE is installing a 0.8 MW (800,000 watt) capacity solar energy unit at Zheijang Sci-Tech University in Hangzhou.  Yearly income generated by this solar energy unit is estimated  to be approximately 1.45 MSEK ($170,588 US)*.  Over the unit’s 20-year lifetime, total accumulated income is estimated to mount to approximately 29 MSEK ($3,411,800 US). This order is separate and apart from the recently reported co-operation agreement contract with the HeNan Provincial Energy Conservation Co. Ltd.

With this installation order, ASRE is taking on a new and very interesting market segment with great potential in the local area – and from a long-range perspective – in the nation, as well: China has 2,845 universities, 67 of which are located in Zheijang Province.

Installation is planned to be carried out in two steps, with 400 kW installed at each step. The first step is to be carried out during the first quarter of 2016 and the second later on in the year. The completed installation is estimated to produce approximately 880,000 kWh annually, and the customer is committed to buying all the electricity the system produces. Investment in the solar energy unit, which continues to be owned by ASRE, mounts to circa 10.3 MSEK ($1,211,180 US).

ASRE’s earnings are consolidated in the SolTech concern’s balance sheet, where ASP’s minority share of earnings, as SolTech’s partner in ASRE, is posted as the minority’s interest.

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

CEO Frederic Telander observes in a report:

  • Universities in China constitute a potential gigantic market. How great a breakthrough we achieve is, of course, only speculation. The strength of our competitive position, on the other hand, is indisputable. Without having to lift a finger or lay out a cent, the universities save money through us and, at the same time, contribute the attainment of China’s environmental goals. The numbers can easily become much greater in this nation: Our customer Sci-Tech University alone has 500,000 square meters of roof surface. If we hypothetically entertain the thought of our getting to install solar cells on just 10% of this surface, it would equate to approximately 4 MW of solar energy. All told, Hangzhou is home to an additional 14 universities and colleges. Assume that every university or college in Hangzhou has, on average, 100,000 square meters of roof surface. If we were to install solar cells on 10% of their combined roof surface, we would get approximately 11 MW of additional solar energy. Further consider that within all of Zheijang Province there are 67 such institutions of higher learning, and within all of China 2,845. Now, we have a potential gigantic market in the proper meaning of that word.

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 allow for esthetic integration with a building’s outer shell.

SolTech Energy Sweden AB has approximately 5,600 shareholders and its shares are traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. The wholly owned subsidiary Wasa Rör T Mickelsson AB is also included in the parent concern. The company’s Certified Advisor is G&W Fondkommission (securities broker). For more information see: www.soltechenergy.se.

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. 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 ($47,000,000 US).

 

 

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