SolTech's China business lands a new deal, which gives SEK 39.4 million during the contract period

SolTech Energy’s joint venture in China, Advanced SolTech Renewable Energy Hangzhou Co. Ltd., ASRE, has signed an order with Luo Rui Sporting Goods (Kunshan) Co. Ltd. The order applies to the installation of a 2.1 megawatts (MW) solar power plant and are expected to generate annual revenues of approximately SEK 1.97 million. During the agreement’s 20-year maturity, the accumulated revenues are estimated to amount to approximately SEK 39.4 million.

The plant will annually produce about 2 184 000 kWh. The customer undertakes to buy all the electricity that the plant produces for 20 years. The investment in the facility, which will continue to be owned by ASRE, amounts to just over SEK 13.9 million and construction start is planned for Q3, 2019.

CEO Stefan Ölander in a comment:
– Our business in China goes according to plan. In this deal, we receive no grants at all. Despite this, it only takes seven years to earn the entire investment and then there are 13 years left with great income and very small costs. This proves that we now achieve good profitability in our Chinese operations without grants, which has also been our long-term strategy.

For more information, please contact: Stefan Ölander, CEO SolTech Energy Sweden AB (publ)
Tel: 070-739 80 00. Email: stefan.olander@soltechenergy.com

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 May 20, 2019 at. 07.15 CET.

 

About SolTech Energy Sweden AB (publ)
SolTech Energy develops and sells aesthetic and building-integrated solar energy products for all types of real estate – commercial, public and residential. The products are part of a building’s outer shell in the form of a roof or a wall with integrated solar cells for the production of electricity. The Group also conducts operations in China where the business model consists of financing, owning and operating solar power plants on customers’ roofs and selling all the electricity that is produced. The Group also includes the subsidiaries Nyedal Solenergi, the NP Group and Swede Energy, as well as the jointly owned companies ASAB in Sweden and ASRE in China. SolTech Energy Sweden AB (publ) is traded on First North at Nasdaq Stockholm under the short name SOLT and has approximately 18,000 shareholders. The Company’s Certified Adviser Erik Penser Bank Telephone: +46 8 463 83 00. Email: certifiedadviser@penser.se. More info at: www.soltechenergy.com

About the Chinese initiative
SolTech Energy’s investment in China is conducted in partnership with our partner, Advanced Solar Power Hangzhou Inc joint venture, Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd. (ASRE). The business model consists of ASRE financing, installing, owning and running solar energy installations on customers’ roofs. The customer does not pay for the facility, but instead undertakes to buy all electricity produced by each plant during a 20-25 year contract. ASRE’s current income comes from the sale of electricity to the customers and from various forms of grants per kWh produced. Now the focus is on building an order backlog for 2019 and onwards with the goal of year 2021 has an installed capacity of 605 megawatts (MW) that is fully connected to the network 2022

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