Sky Solar declares first distributed Generation project in China

Sky Solar Holdings which is a global developer, owner and operator of solar parks claimed that it has ventured into a 25-year Power Purchase agreement with two wholly-owned subsidiaries of Shenzhen Kaifa Technology Co., Ltd. , a Shenzhen-based electronics manufacturing service provider, to develop a 1.7 MW rooftop solar project in Suzhou, China. This will be Sky Solar’s first distributed generation project in China.

Sky Solar China will be the independent power producer that develops, owns, and operates the project. Upon completion, Shenzhen Kaifa will purchase more than 85% of the electricity generated from the project, with the balance being sold to the State Grid. The project is anticipated to be completed before year-end.

Mr. Wen Qian, President of Sky Solar China, commented, “We are excited to announce our first rooftop solar distributed generation project in China. This is an attractive opportunity for us, because the PPA price is locked in for 25 years with a potential unlevered IRR in the low- to mid-teens.”