Soltech group signs two new orders in China that will generate revenues of approx SEK 22 million during the contract period
Advanced Soltech’s subsidiary in China, ASRE, has signed an order with AnHui ZhongKe WeiZhi Logistics Equipment Manufacturing Co. Ltd. of 0.8 megawatts (MW) and an order with Wayz Intelligent Manufacturing Technology Co. Ltd. of 0.6 MW. The orders concern the installation of two solar energy plants that together are estimated to generate annual revenues of apx. SEK 1.11 million, or apx. SEK 22 million during the 20-year term of the agreements, completely without subsidies. The investments in the facilities, which will be owned by ASRE, amount to a total of apx. SEK 7.86 million and construction is scheduled to start in the fourth quarter of 2020.
Advanced Soltech´s CEO Max Metelius comments:
– We have a very good market and a well-functioning sales organization that continues to deliver new customers. ASAB’s current portfolio of solar energy projects reduces carbon dioxide emissions by approximately 100,000 tons annually.
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.