Gigasun's wholly-owned subsidiary in China has signed five agreements with Chinese industrial companies for the installation of solar energy plants with a total capacity of approx. 3.8 megawatts (MW).The plants are expected to generate annual revenues of approx. SEK 1.8 million from sale of electricity, which corresponds to a total order value of approx. SEK 36 million over the 20-year term of the agreement.
The investment in the facilities amounts to approx. SEK 14.4 million and the project is planned to commence in the first quarter of 2026. The plants will be owned and operated by Gigasun's subsidiaries and are expected to reduce carbon dioxide emissions by approximately 1,400 tonnes per year. The projects are fully commercially viable without the need for government subsidies.
The solar power plants will be built in ChongQing.
CEO Max Metelius comments:
" Despite stiff competition, Gigasun continues to bring new orders in China. The Chinese market continues to present attractive opportunities for Gigasun expanding its presence to the city of ChongQing. In the past, ChongQing has not been interesting for investors in solar energy due to lower solar radiation, but with the falling costs of building solar energy plants, this area also opens up for our business model"
For more information, please contact:
Max Metelius, CEO Gigasun AB (publ)
E-mail: max.metelius@gigasun.se
Stefan Salomonsson, CFO Gigasun AB (publ)
E-mail: stefan.salomonsson@gigasun.se
Certified Advisor is FNCA Sweden AB
About the operation
Gigasun operates in China through its wholly owned subsidiaries Advanced Soltech Renewable Energy (Hangzhou) Co. Ltd ("ASRE") and Longrui Solar Energy (Suqian) Co. Ltd. ("SQ"), and Suqian Ruiyan New Energy Co., Ltd. ("RY").
The business model consists of financing, installing, owning and managing solar PV installations on customers' roofs in China. The customer does not pay for the solar PV installation, but instead enters an agreement to buy the electricity that the solar PV installation produces under a 20-year agreement. Current income comes from the sale of electricity to customers and governmental subsidies.
The goal is to have an installed capacity of 1,000 megawatts (MW) in the medium term.
