Vsolar to develop rooftop solar power system at AT Sytematization's glove plant

Vsolar to develop rooftop solar power system at AT Sytematization's glove plant
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KUALA LUMPUR (Oct 23): Vsolar Group Bhd has entered into a deal to instal rooftop solar panels at a plant belonging to AT Systematization Bhd's glove manufacturing subsidiary in Perak.

In a bourse filing, the solar power group said that under a memorandum of understanding signed by the two parties, AT Glove Engineering Sdn Bhd will appoint Vsolar as the engineering, procurement, construction and commissioning consultant to build and manage the installation of a rooftop solar power system on a leasing agreement.

A formal corporate power purchase agreement is to be signed by both parties at a later stage, it added.

The rooftop solar power system will have installed capacity for 1MW. The lease tenure of the system will be for 15 years, while the actual tariff paid to Vsolar will be mutually agreed and reflected in the agreement.

The total upfront cost of the rooftop system will be borne by Vsolar, where the cost will be recuperated through the lease tenure via a net energy metering initiative based on an agreed tariff price.

AT Glove will be eligible for an investment tax allowance by the Malaysian Investment Development Authority under the Green Technology Incentive, Income Tax Act 1967.

"This is to align with AT Glove looking towards other sources of sustainable energy to manage their carbon footprint responsibly," said Vsolar.

Shares in Vsolar finished 16.67% or half a sen higher at 3.5 sen, valuing the group at RM73.56 million. The counter saw 7.51 million shares traded.  

AT Systematization was unchanged at eight sen, giving a market capitalisation of RM235.73 million. The stock saw 188.86 million shares changing hands.

S Kanagaraju