2.84 MW are now coupled to the electrical network in China and generating income

 

At the end of August, SolTech’s subsidiary ASRE coupled – as promised in the interim report – its fifth completed solar energy installation to the central electrical network, namely: 600 KW for Ningbo Hetson Car Parts Co Ltd. The earlier ASRE coupled-installation total of 2.24 MW (megawatts) has thereby been raised to 2.84 MW, which on a rolling 12-month basis is estimated to generate approximately 5.25 MSEK (0.55 MEUR) in annual income.

Under the remaining months of 2016, ASRE plans to couple an additional ten (10) installations, equivalent to 13.63 MW, to the electrical network. Of these, three are already fully installed waiting to be coupled, three are under construction, and construction of the remaining four is planned to begin in the very near future. All told, ASRE thus plans to have 16.47 MW of solar energy capacity coupled by the turn of the year, which, on a rolling 12-month basis, is estimated to generate an income just under 30 MSEK (3.16 MEUR).

CEO Frederic Telander comments;

  • By making use of local partners for the installation and start up of ASRE’s installations in China we have obtained low fixed costs and, at the same time, established flexibility and are able to grow quickly. Excluding non-recurring costs for – among other items – establishing ASRE, we now have achieved a positive cash flow, with 2.84 MW coupled to the electrical network. With 16.47 MW coupled, we attain good profitability. Our goal of constructing 25 MW of solar energy capacity during 2016 still holds. Plans call for the remaining 8.53 MW to be coupled to the electrical network during the first quarter of 2017.

For more information, please contact:
Frederic Telander, CEO SolTech Energy Tel; +46 8 441 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 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, 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 (42 MEUR).

 

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