Solar Alliance energizes first two company-owned solar projects in New York
Company is targeting additional ownership opportunities in 2023 combined with growing revenue from installation division
TORONTO and KNOXVILLE, Tenn., 2023 (GLOBE NEWSWIRE) -- Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR, OTCQB: SAENF), a leading solar energy solutions provider focused on the commercial and utility solar sectors, is pleased to announce it has completed the construction of the Company’s first two solar projects in New York and both are now in operation.
VC1, a 298-kilowatt (“kW”) project located in the Village of Cazenovia, and US1, a 389-kW project located in the Village of Union Springs (the “Projects”), have both received permission to operate and are now generating clean, renewable electricity under long-term power purchase agreements with the local communities.
“Solar Alliance is now the proud owner of two operating solar projects in New York as we wrapped up 2022 by achieving commercial operation on US1 and VC1,” said CEO Myke Clark. “These two projects represent proof-of-concept for our asset ownership strategy and represent a solid foundation to aggressively grow our portfolio of assets under ownership in 2023 and beyond.”
“The recently passed Inflation Reduction Act in the U.S. is driving increased investment opportunities for the projects Solar Alliance is developing and these New York projects are a prime example of the benefits of the legislation. Combined with the growing revenue stream from our installation division, the energizing of these projects is a key catalyst for the next stage in our growth,” concluded Clark.
Solar Alliance continues to execute on the Company’s strategy to build, own and operate solar assets, while also generating stable revenue through the sale and installation of solar projects to commercial and utility customers. The Company recorded its largest quarterly revenue in Company history during Q3, 2022, and has built a substantial backlog of contracted projects.
Pursuant to the Memorandum of Understanding (“MOU”) announced dated October 26, 2022, the Company also completed the tax equity investment in the two Projects. The tax equity investment structure is a customary partnership-flip agreement, which is non-dilutive and structured at the project level. This efficient investing structure can be utilized to develop additional solar energy projects in the United States. In connection with the MOU, the Company will issue a total of 300,000 warrants to the tax equity providers, exercisable at a price of CA $.08 per share for a period of five years. The warrants are subject to the approval of the TSX Venture Exchange.