Investor FAQs

1. What is the average IRR of the PV power plant sector in China?

In China,the IRR is around 8-12%. Western regions record a relatively higher IRR.

 

 

2. What is the target capacity of China’s solar power plants in 2015?

National Energy Administration (“NEA”) increased the total installed capacity target for 2015 to 23GW in September 2015, which is based on the 2015 solar target of 17.8GM previously suggested by NEA, representing a 30% increase of newly installed capacity target. As a key to achieve the goal of raising the percentage of total energy mix supplied by non-fossil fuel to 15% by 2020, solar power industry is staunchly supported by the Chinese government. Future needs for solar energy in China is expected to remain strong.

3. Why is United PV primarily engaged in acquiring and operating solar power plants?

The recent national policies and market trends are favorable to the development of downstream enterprises in the photovoltaic industry. Maintaining a sound cash flow is the key factor to the stable operation and development of a production oriented company. Hence, upstream manufacturing based enterprises are more than willing to achieve return on investment in a shorter period by selling their built and grid-connected solar power plants to United PV. In contrast, United PV, focusing on operating as well as investing in solar power plants, is able to take full advantage of sufficient financial resources and a strong fundraising platform to optimize techniques and improve operation efficiency. Usually, it takes eight years to recoup investment, which means United PV will be able to achieve satisfactory returns within the 20-year operation cycle of its solar power plants.

4. Who did United PV sign framework agreements with to acquire PV Plant projects?

Partner

Province/ Region

Capacity

Plant Type

Signatories

Schedule

Companies under the CMG

Across China and OBOR nations

3GW

Ground-mounted / rooftop

United PV

2015 - 2016

Photovoltaic Green-Ecosystem Organization, PGO

Across China

5GW

Ground-mounted / rooftop

CMNE

2015 - 2018

Nari Group of State Grid

Across China

1.5 GW

Ground-mounted

United PV

2015 -

Zhongli Talesun

Across China

2GW

Ground-mounted

United PV

2015 -

Yingli Solar

Across China

1.41GW

Ground-mounted

United PV

2015 -

Hareon Solar

Across China; Europe

8GW

Ground-mounted

CMNE

2015 -

Znshine Solar

China, Europe, Japan

2GW

Ground-mounted

United PV

2015 -

Total           22.91  GW

 

5. Regarding United PV’s acquisition projects from GD Solar and Talesun, are they subject to same acquisition requirement?

Every project is subject to similar acquisition requirements. There are four preconditions to meet. Firstly, we will sign framework agreements with acquires. Upon completion of construction and successful grid connection, the construction costs will be settled by our partners for the time being. And then, we will conduct an overall technical adjustment to the solar power plants. We will sign the acquisition agreement and thereby own the solar power plants only if they have been connected to the grid.

6. As for solar power plants acquired by United PV, are they using thin-film modules or polysilicon modules?

Most of the solar power plants under United PV are using polysilicon modules. Some distributed solar power plants (e.g. the 23.8MW ecological agriculture solar power project in Feng County, Jiangsu Province) are using both crystalline silicon solar modules and as well, a minor portion of thin-film solar modules. The conversion efficiency of thin-film cells is limited to approximately 12%-18%, lower than 18%-25% of polysilicon cells. The degradation rate of solar cells’ conversion efficiency is 0.6%-0.9% per year. Yet there is no sign of degradation for our lately built solar power plants so far.

7. What are the annual utilization hours of power generation in United PV’s solar power projects?

The sunshine duration in the western region is longer than that in the southeast area. Solar feed in Qinghai and Gansu allows 1500-1700 hours for power generation, while 1000-1200 hours in Shenzhen and Quanzhou.

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