Contracted Order– with a 25-year lifespan - is signed with SolTech’s subsidiary, ASRE, in Shangyu City, China

 

ASRE is installing a 1 MW (1,000,000 watt) solar energy unit on the roof of Zheijang Jinma Packing Co. Ltd. in Shangyu City in China’s Zheijang Province. Up and running, the unit is estimated to return the equivalent of approximately 1.6 MSEK ($195,120 US)* in annual income to ASRE, which over the contract’s 25-year lifetime is estimated to mount to a cumulative income of approximately 40 MSEK ($4,800,000 US).

Plans call for the installation to be completed during the third quarter of 2016, and the unit ’s annual production is estimated to be approximately 1,000,000 kWh.  As with ASRE’s other contracts, the customer is committed to buying all the electricity the system produces. Investment in the installation, which is owned by ASRE, amounts to approximately 10.2 MSEK ($ 1.240,000 US).

CEO Frederic Telander comments:

  • Shangyu City is located between the province’s capitol city, Hangzhou – where ASRE is based – and Ningbo. In both these cites, we already have customers. Establishing ourselves in the province, as expected, is paving the way for further energy sales and we view the business possibilities that lie ahead as very good. This contract is the first we have signed that has a lifespan of 25 years, instead of the 20-year lifespan of our previous contracts, which give us a better total return.

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

For more information, please contact:
Frederic Telander, CEO SolTech Energy Tel; 08-441 88 46. Mejl; 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 its 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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