Eighth customer in Ningbo will provide circa 39 MSEK in earnings over 20 years

SolTech’s subsidiary in China, ASRE, has signed an order in with Ningbo HanHai Investment Co., Ltd. The order concerns the installation of a 1.2 MW (megawatt) solar energy unit in the city of Ningbo generating an estimated annual income amounting to approximately 1.95 MSEK (0.2 MEUR). Over the contract’s 20-year lifespan cumulative total income is estimated to mount to approximately 39 MSEK (4 MEUR).  With the addition of this order, SolTech has thus far obtained orders totaling 22.87 – 26.87 MW in 2016, which equates to 91 – 107% of this year’s goal of 25 MW.

The installation covers a roof surface measuring circa 12,000 sq. meters and is estimated to produce circa 1,200,000 kWh, roughly equivalent to the annual electrical consumption of 85 new-built, typical Swedish

single-family homes that use, on average, 14,000 kWh per house. Ningbo HanHai Investment Co. Ltd. contractually commits 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 12 MSEK (1.3 MEUR) Completion of the installation is expected to take place during the first quarter of 2017.

Ningbo, with a population of 7.6 million, isa vital port citylocated in Zhejiang Province, which is also the home province of SolTech.  Over this past year, SolTech has obtained seven other orders in Ningbototaling 8.36 MW. Combined with this latest order, ASRE now has an estimated annual income from installations in Ningbo, alone, equivalent to approximately 17.11 MSEK (1.8 MEUR),or 342.2 MSEK (36 MEUR) in total cumulative income over 20 years.

CEO Frederic Telander comments:

  • ”Yet one more customer in Ningbo – Now we’re starting to become truly established in the region! Naturally, it is gratifying to see that we have, in principle, achieved this year’s goal of 25 MW in sold volume. And it is particularly satisfying that this achievement should occur right here in Ningbo, where completed installations are quickly coupled to the central network – which means a faster addition to the income flow of ASRE, and thereby a faster addition to the income of SolTech Energy. ASRE is now focusing on next year’s goal, 50 MW, double the volume of 2016.”

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 KungligaTekniskaHögskolan (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 co. Ltd. (ASRE), as well as its wholly owned subsidiary WasaRör 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 ($47,000,000 US).

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