SolTech’s jointly owned subsidiary sells a solar energy installation in China.
Income is estimated to be approximately 2.3 MSEK ($270,590 US*) per year beginning the start of 2016, or approximately 45.5 MSEK ($5,294,000 US) over the life of the contract.
SolTech’s jointly owned (51 % interest) Chinese subsidiary, Advanced SolTech Renewable Energy (ASRE), is erecting a 1 – 1.5 MW (Mega Watt =1,000,000 watts) solar energy installation for the production of electricity on the roof of Advanced Solar Power’s factory in China. The system is owned by ASRE and is planned to start up operation during the fourth quarter of 2015. Total investment is estimated to be approximately 10 – 15 MSEK ($1,176,470 – $1,764,700 US*), and Advanced Solar Power (ASP) is committed to buying all the electricity the system produces: ASP is SolTech’s partner in China and owner of the remaining 49 % of ASRE.
The system’s estimated annual production of electricity is approximately 1,200,000 – 1, 800,000 kWh, thereby generating a corresponding income of approximately 2.3 MSEK ($270,590 US) per year. Over the 20-year life of the contract, the sum total income generated by the installation comes to approximately 45.5 MSEK ($5,294,000 US) for ASRE.
- ”With the sale of this solar installation, we have now covered approximately 3 MW of our planned 5 MW (installation and production goal) for 2015. Our contract with ASP has been undersigned in line with commercial standards and provides a return on invested capital that is as good or better than comparable business ventures. In addition to providing income to ASRE, this installation creates a notably high-profile interest in the product that is attracting the attention of other Chinese customers. One of the joint owners is installing the technique itself and at the same time saving money in an environmentally beneficial way. This, without question, awakes interest – and moreover – constitutes a concrete contribution towards fulfilling China’s ambitious environmental goals. Here, all parties are winners,” states CEO Frederic Telander in a report.”
- ”With the solar installation on our roof, we satisfy approximately 30 – 50% of our yearly electrical consumption, which makes our production even more environmentally responsive and clean – plus, at a lower price per kWh than our usual price for electricity. We are all making a good business deal and creating a better environment, which is precisely what we wish to demonstrate and communicate to our customers with this installation,” concludes ASP’s CEO Ben Wu in a report.
* Based on an exchange rate of 8.5 SEK/ US Dollar
For more information, please Contact
Frederic Telander, CEO SolTech Energy. Tel; 46 08-441 8846
SolTech 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 allow for esthetic integration with a building’s outer shell.
The wholly owned subsidiary Wasa Rör T Mickelsson AB is also included in the parent concern. SolTech Energy Sweden AB currently has approximately 5,600 shareholders and its shares are traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. The company’s Certified Advisor is G&W Fondkommission (securities broker). For more information please visit: www.soltechenergy.com
Collaboration with Advanced Solar Power
The Company’s business interests in China are carried out by a jointly owned company, of which SolTech owns 51% and Advanced Solar Power Hangzhou Inc. 49%. The business model consists of said jointly owned company being responsible for the installation, ownership, and periodic maintenance of solar energy installations that are installed on customers’ roofs, most particularly for the present, in Hangzhou in the province of Zhejiang, with a view to then expanding to other regions in China. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term (20+ years) binding contract to buy all the electricity and/or thermal heat that each installation produces.