The news agency Direkt has today published an article about changes in China’s prices and subsidies regarding solar energy and that Tesla plans to lower prices for its solar panels. SolTech Energy has the following comments on this news as the Company’s share price has been strongly affected.
– SolTech’s Chinese subsidiary ASRE’s business model is not affected by the fact that the price mechanism is adjusted for electricity grid-operated solar power because ASRE sells its electricity directly to its customers
– The changes made apply to “feed in tariff” and mainly affect solar parks, something ASRE does not deal with
– ASRE existing agreements are not affected at all by reduced subsidies as these subsidies are fixed for 20 years
– The exclusive five-year cooperation agreement with Jiangsu Province, on the construction of 500 megawatts (MW) solar power capacity, which was published March 26, is not affected at all since this agreement does not contain any subsidies. The agreement is expected to be fully developed and, without any contribution from either the province or the central government, generate annual revenues of approximately SEK 465 million. This corresponds to an annual return on invested capital of about 15.8%, which shows that the dependence on subsidies for achieving good profitability no longer exists for ASRE.
– SolTech has for a long time communicated that our business model in ASRE is based on the fact that we do not expect any subsidies in the future
– Tesla’s lowering of its prices is only positive. SolTech would like Tesla to finally get started with its aesthetic and building-integrated solar cells. SolTech has long sought to drive the market from surface-mounted solar panels to integrated and stylish solar energy solutions. Something that SolTech is the leader in. Tesla’s help is something we welcome.
For more information, please contact: Stefan Ölander, CEO SolTech Energy Sweden AB (publ)
Tel: 070-739 80 00. Email: firstname.lastname@example.org
The information in this press release is such that SolTech Energy Sweden AB (publ) must publish in accordance with EU Regulation No. 596/2014 on Market Abuse. The information was submitted through the above contact person’s agency for publication on April 30, 2019 at. 13.00 CET.