Advanced Soltech's subsidiary in China, ASRE, has signed an order with Wuhu DingFeng Auto Parts Co. Ltd. The order concerns the installation of a solar energy facility of 1.2 megawatts (MW) and is expected to generate annual revenues of approximately SEK 0.98 million, or approximately SEK 19.65 million during the agreement's 20-year term. The investment in the facility, which will be owned by ASRE, amounts to approximately SEK 6.66 million and construction is scheduled to start in the fourth quarter of 2020.
Advanced Soltechs CEO Max Metelius comments:
- We are happy to present yet another good project with strong profitability completely without subsidies. We have an offer that is appreciated by the market and also contributes to benefit the climate.
About the China venture
in China ASAB operates through, its wholly owned local subsidiaries Advanced Soltech Renewable Energy (Hangzhou) Co. Ltd, ASRE and Longrui Solar Energy (Suqian) Co. Ltd. The business model consists of financing, installing, owning, and managing solar energy installations on customers' roofs in China. The customer does not pay for the plant, but instead undertakes to buy the electricity that the plant produces under a 20-year agreement. Current income comes from the sale of electricity to customers and from subsidies. The goal is to have an installed capacity of 1,000 megawatts (MW) by 2023, which is fully connected to the electricity grid by 2024.
ASAB is 50.85 % owned by Soltech Energy Sweden AB (publ), 48.85% by Soltech's Chinese partner, Advanced Solar Power Hangzhou Inc and 0.3% by several holders of preference shares.