SolTech’s subsidiary, ASRE, has undersigned an order with Xuri HongYu. The order covers the installation of a solar energy unit in the city of Ningbo. The capacity of the installation is 2 MW (megawatts) and is estimated to provide an annual income equivalent to approximately 3.38 MSEK ($450,000 US)* over the contract’s 20 year lifespan, with accumulated income estimated to mount to approximately 67.6 MSEK ($7.95 M US)*.
The installation is estimated to produce circa 2,000,000 kWh annually. XurI HongYuCo. Ltd. is 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 19,84 MSEK ($2.33 M US)*, and it is estimated to be completed during the fourth quarter of 2016.
Ningbo, with a population of 7.6 million people, is a vital port city located in ASRE’s home province, the Province of Zhejiang. To date, ASRE has garnered six other orders in Ningbo this year, representing a total solar electrical capacity of 6.36 MW (megawatts). With the inclusion of this order, ASRE will now have estimated annual earnings in the range of 15.16 MSEK ($1.78 M US)* from its solar installations in Nimbo, and circa 303.2 MSEK ($35.7 M US)* in total earnings over 20 years.
* Based on an exchange rate of 8.5 SEK / US Dollar
CEO Frederic Telander comments:
“Yet one more customer in Ningbo! – Now we’re starting to see a pronounced rise in momentum in the region. In addition, the responsible authorities are quick to connect duly completed installations to the central net, which in turn means a quicker start to new income floods for ASRE. The fact that these projects are being carried out in the same city quite naturally promotes a significant increase in installation efficiency at a lower per unit cost, but in addition; word of our customers’ satisfaction within the area has demonstrably led to more and more business. ”
For more information, please contact: Frederic Telander, CEO SolTech Energy Tel; 08-441 88 46. Email: email@example.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 co. Ltd. (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 ($47,000,000 US).