Income is estimated to be in the area of 1.37 MSEK or approximately $161,000 US, for the year 2016, or 27.4 MSEK ($3,224,000 US)* over the lifetime of the contract.
SolTech’s jointly owned (51 %) Chinese subsidiary, Advanced SolTech Renewable Energy (ASRE), is installing a solar energy unit for the production of approximately 700 Kw (700,000 watts) of electricity on the roof of the Ningbo General Mechanical Plastic Machine Factory in China. The customer is contractually committed to buying all the electricity the system produces. Investment in the solar energy unit, which will continue to be owned by ASRE, mounts to approximately 7 MSEK ($823,530 US)*. Plans call for this unit to be installed and in use within the span of January/February 2016.
The system is estimated to produce approximately 770,000 Kwh, and generate a corresponding income of approximately 1.37 MSEK ($161,000 US) for ASRE. Over the contract’s 20 year lifetime, total accumulated income from this installation to ASRE is estimated to be approximately 27.4 MSEK ($3,224,000 US).
* Based on an exchange rate of 8.5 SEK/US Dollar
CEO Frederic Telander observes in a report:
- ”This second sale in the region, signed and sealed within a notably short time span, creates a sustantial amount of business interest in the multi-sided value of our product, at the same time that the business model provides ASRE a sound and stable return over many years. The customer saves money by opting to make use of an environment-friendly energy technology that moreover helps serve the interests of China in achieving its ambitious environmental goals. With the sale of this solar installation, we have now covered approximately 3.7 MW of ASRE’s planned 5 MW for 2015. The longer range goal, according to the prospectus that was given out in connection with SolTech’s listing in June, is to have – by the opening of 2019 – installed and set into operation an electrical capacity equivalent to 230 MW. At this pace, we continue to hold to this timetable.”
For more information, please Contact:
Frederic Telander, CEO SolTech Energy Tel; 46 08 441 8846.
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 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 see: www.soltechenergy.se.
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 the jointly owned company, Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd (ASRE), 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.