Solar Alliance Outlines Aggressive U.S. Expansion Plans
TORONTO and KNOXVILLE, Tenn., April 20, 2021 (GLOBE NEWSWIRE) — Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR) is pleased to provide an updated outlook on its goals and objectives for the remainder of 2021 with a clear focus on the rapidly growing U.S. solar market.
“This year has seen Solar Alliance achieve an important financial milestone already,” said CEO Myke Clark, “and we see a number of catalysts in the near term that we believe will be transformative for the company. With the closing of our $5.7 million financing in Q1, we are now perfectly positioned at the right time to aggressively pursue what we see are tremendous growth opportunities in the US. solar market that could increase revenues exponentially.”
- On March 31 U.S President Joe Biden announced a $2 trillion American Jobs Plan focused largely on infrastructure spending. As part of this plan, Mr. Biden is proposing a 10-year extension of the investment tax credit (ITC) and an expanded direct pay ITC for solar projects. These two key proposals have the potential to accelerate Solar Alliance’s growth and the company’s ability to own and operate solar projects.
- For the second year in a row, solar led all technologies in new electric-generating capacity added, accounting for 43% of the total amount, according to the Solar Energy Industries Association.
- With the Company’s operations focused on the United States and with a backlog of projects under various stages of agreement with combined capital costs totalling approximately $66 million (U.S.), Solar Alliance is perfectly positioned in the U.S. Southeast to take advantage of this shift to solar technologies and expand into other areas of the American market.
Here are key objectives the company has in sight for the remainder of 2021:
- Construction-ready project acquisitions. Solar Alliance is targeting several construction-ready projects for potential acquisition. Ideally, the Company is seeking projects that are fully permitted, have obtained power purchase agreements and are ready to build. Acquiring construction-ready projects allows the Solar Alliance team to manage construction and step in as owner/operator, generating long-term, sustainable revenue for the Company.
- Launch Corporate Green Bond. The Company is determining the appropriate structure for a Green Bond to support additional project acquisitions. Using dedicated Green Bond proceeds to acquire early stage and construction ready projects is a non-dilutive method to bring operating assets into the Solar Alliance portfolio and support the generation of long-term recurring revenue streams.
- First Microgrid contract. As part of the Company’s focus on the high margin sector of the solar industry, several potential opportunities are being pursued to deploy microgrid solutions containing solar, battery storage and generators.
- Construction of Phase 1 of 56 MW Illinois project. Design work continues and the Company is targeting the construction of a first phase of the project as early as this summer. Final details will be determined once a first stage sales agreement is signed, something the Company is confident will occur in 2021.
- Joint Development Agreement with Canadian partner and expansion into Canada. Significant opportunities exist in the Canadian commercial solar sector. The Company is committed to signing an agreement with a Canadian partner with installation experience in order to accelerate initial sales in Canada. Such a partnership would support sales opportunities the Company is already pursuing in Canada.
- Expanded relationship with Boyd CAT and new office in Kentucky. The Company has been working closely with Boyd Company, a regional Caterpillar dealership, for several years and looks forward to expanding that relationship in order to bring even more solar opportunities to Kentucky. This includes opening a new office in Louisville, Kentucky.
Solar Alliance’s goal is to become a North American solar leader by focusing on high-margin, commercial, industrial and mid-sized utility solar projects. Our goal is to expand rapidly in the US and take advantage of opportunities as they arise in Canada.
The Solar Alliance investment thesis is built on three key foundations:
- Strong and stable sales growth. Solar Alliance has grown its revenue annually for several years and looks forward to releasing its 2020 audited financial results before the end of April. 2020 third quarter revenue was $2,517,610, a total which already exceeded 2019 total revenues. This stable, and growing, revenue stream provides a strong foundation that allows the Company to deploy available capital on high-return growth opportunities. Solar Alliance has built a strong pipeline of projects under various stages of agreement with combined capital costs totaling approximately US $66 million, consisting of a diversified portfolio of customers and project sizes.
- Focus on high margin markets with high barriers to entry. Solar Alliance has focused its business on the segments of the solar industry where margins are highest and where its team has demonstrated an ability to convert opportunities into revenue. These segments include:
- Commercial solar projects that reduce operating costs for businesses.
- Utility solar projects in the 5-50 megawatt range.
- Microgrid solutions for large businesses and communities that include solar, battery storage and generators.
- Data center solar solutions. As a first mover in the space, Solar Alliance is securing market share and a reputation in this fast-growing sector.
- Exposure to massive solar industry growth. Solar Alliance is perfectly positioned in the best market at the best time with a focused business plan. The U.S. American Jobs Plan is expected to provide strong incentives for solar, including a ten-year extension of the Investment Tax Credit (“ITC”) and an expanded “direct pay” ITC for solar projects.
“Solar Alliance has a clearly defined growth plan that can support significant revenue increases moving forward. With a growing pipeline of projects, a focus on the high margin sectors of the solar market and an industry that is growing incredibly fast, Solar Alliance is looking forward to a successful 2021 and beyond,” concluded Clark.
Investors can view the Company’s updated Investor Presentation at: www.solaralliance.com/investors/investorpresentations/
Myke Clark, CEO
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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 several other states and has an expanding pipeline of solar projects. Since it was founded in 2003, the Company has developed wind and solar projects with a combined capital cost exceeding $1 billion 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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