Shanghai: A new market for SolTech’s subsidiary ASRE

 

Soltech has signed an order with Shanghai Yongde Labels Packaging Co. Ltd. covering the installation of a 250 kW (250,000 watt) solar energy unit. The installation is estimated to generate an annual income equivalent to 480,000 SEK ($56,470 US)*. Over the contract’s 20-year lifespan, accumulated income is estimated to mount to approximately 9.6 MSEK ($1.13 M US).                                                        

The installation is estimated to produce circa 252,500 kWh annually, and the customer is contractually committed to buying all the electricity the system produces over the contracted  period of 20 years. Investment in the installation, which continues to be owned by ASRE, amounts to approximately 2.8 MSEK ($329,400 US), and its installation is expected to be completed during the first quarter  of 2017.

 CEO Frederic Telander comments;

”The installation, itself, is one of the smaller units we build, but this is compensated for by the considerable business value of two big factors that accompany it. The first relates to our having broken into the Shanghai market. This is important, particularly as we have previously seen that once a sale is closed in a city or region of China, where we have been cultivating a business relationship, it invariably opens the way to new sales in the area.  The other factor is the order’s specified price of electricity – It’s  ASRE’s highest contracted price to date, which bodes well for future  orders in the region. Add to this that Shanghai is Asia’s next most vital economic center, second only to Tokyo, as well as being China’s most expansive and economically vital city with circa 19 million inhabitants. Also significant, is the fact that it lies only two-hours by car from ASRE’s  home city, Hangzhou. Yet another factor that makes this region all the more interesting.”

* Based on an exchange rate of 8.50 SEK/ US dollar

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