Our Business Model
Advanced Soltech’s business model is to finance, install, own and continuously manage solar PV installations on the roofs of our clients; mainly medium-sized and large private public companies, state-owned companies and organisations such as universities. The client does not pay for the solar PV installation but commits on 20-year contracts to buying all the electricity that their respective installation generates.
Ongoing revenue comes from the sales of electricity to our clients. Our strategy is to build an order book aiming at an installed capacity of 1,000 MW that is fully connected to the power grid by the end of 2024. The exact annual rate of installation depends on the availability of capital.
Solid contracts with the clients provide long-term and stable cash flows while ensuring the company’s ownership of the solar PV installations.
Our clients in China, our investors and Advanced Soltech itself all benefit from this business model, as does the environment.
Swedish and Chinese main shareholders
The owners of Advanced Soltech, SolTech Energy Sweden AB (publ) and Advanced Solar Power Hangzhou Inc., have approximately. 51 percent share and 49 percent share respectively in the company, before the listing. There are also a number of preference shareholders that will be converted to common shares in conjunction with the listing.
Advanced Solar Power Hangzhou Inc. was founded in 2008 by Ben Wu and his father, Professor Xuanzhi Wu. The company is a world leader in thin film solar cells and has a fully automated plant in Hangzhou in China with an annual production capacity of approximately 80 MW. It is, to date, the only company in the world able to produce semi-transparent CdTe thin film solar cells.Advanced Solar Power Hangzhou has an extensive portfolio of patents and new patents are filed on an ongoing basis. The company is owned by the Wu family, the employees and a number of institutional investors such as Legend Capital, North Light Venture Capital, Morningside Venture Capital and Sequoia Capital.