Solar Alliance accelerates growth strategy with second U.S. solar project acquisition
TORONTO and KNOXVILLE, Tenn., June 23, 2021 (GLOBE NEWSWIRE) — Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR) is pleased to announce it has signed a Letter of Intent (the “Agreement”) with Abundant Solar Power Inc. (“Abundant”) to build, own and operate a 389 kilowatt (“kW”) solar project in New York State (the “Project”).
This is the second construction-ready project Solar Alliance will own and operate in New York and will generate a recurring revenue stream over its 30-year life, supported by a power purchase agreement. These two projects represent the initial stages of a longer-term relationship with Abundant to build out a robust portfolio of assets Solar Alliance will own and operate.
“Solar Alliance continues to execute on our aggressive growth strategy with this second project in New York State,” said CEO Myke Clark. “Similar to the first project we signed an agreement with Abundant Solar to own and operate, this 389 kW project is construction ready and is backed by a power purchase agreement that will provide a recurring revenue stream to Solar Alliance. Working closely with Abundant, we are confident we can continue to aggressively grow our portfolio of projects that we will own and operate. This ownership strategy is combined with our growing solar system sales to third party customers, which allows us to generate revenue to support our operations while we grow our portfolio of assets under ownership.”
Solar Alliance anticipates signing an Engineering, Procurement and Construction (“EPC”) contract with Abundant for the Project. Construction on the Project is expected to commence this fall and is anticipated to be in operation by the end of 2021.
The net capital cost for the project is expected to be approximately US$640,000 and will be financed by Solar Alliance either through equity or a combination of debt and equity. As part of the Company’s expansion strategy, Solar Alliance is also assessing opportunities to acquire or partner on earlier stage development projects that would eventually be built, owned and operated by the Company. This complements Solar Alliance’s growing business of designing, engineering and installing solar systems for third party owners.
350 kW Project Update
On May 26, 2021 the Company announced it had signed an agreement with Abundant to build, own and operate a 350 kW solar project (“Project 1”) in New York State. Final design and engineering work on Project 1 is currently being completed and it remains on schedule to be built this year and placed into operation by the end of 2021. A definitive construction timeline will be finalized when an EPC contract is signed with Abundant.
Myke Clark, CEO
About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is an energy solutions provider focused on residential, commercial and industrial solar installations. The Company operates in Tennessee, Kentucky, North/South Carolina and Illinois and has an expanding pipeline of solar projects. Since it was founded in 2003, the Company has developed $1 billion of renewable energy projects that provide enough electricity to power 150,000 homes. Our passion is improving life through ingenuity, simplicity and freedom of choice. Solar Alliance reduces or eliminates customers’ vulnerability to rising energy costs, offers an environmentally friendly source of electricity generation, and provides affordable, turnkey clean energy solutions.
Statements in this news release, other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, constitute forward-looking statements. The words “would”, “will”, “expected” and “estimated” or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include but are not limited to: uncertainties related to the ability to raise sufficient capital, changes in economic conditions or financial markets, litigation, legislative or other judicial, regulatory and political competitive developments and technological or operational difficulties. Consequently, actual results may vary materially from those described in the forward-looking statements.
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