China will stop subsidizing new solar energy projects – an expected and welcome development.

Reuters reported today that the Chinese authorities intend to stop distributing subsidies for new wind and solar energy projects from April 1, 2021.

Advanced Soltech has received very limited subsidies for its projects that are built after the third quarter of 2018. We have a good profitability in the projects without subsidies and never rely on receiving subsidies in new projects. The already approved subsidies for projects that were built before the new law, remain unchanged.

Advanced Soltech welcomes this development that supports a sound market that is not dependent on subsidies and receives strong support from Chinese authorities in our work to help the transition to a sustainable electricity market.

Link to the article
https://www.reuters.com/article/china-renewable-subsidies-idAFL2N2NT04M

For more information, please contact:

Max Metelius, CEO Advanced Soltech Sweden AB (publ)
Phone: +46 (0) 72- 316 04 44. 
E-mail: max.metelius@advancedsoltech.com

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 enters an agreement 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) which is fully connected to the electricity grid by 2024. ASAB is 50.82% owned by Soltech Energy Sweden AB (publ) and 48,83% by Soltech's Chinese partner, Advanced Solar Power Hangzhou Inc.

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China will stop subsidizing new solar energy projects – an expected and welcome development.