Yahoo Finance Solar Alliance continues to execute on milestones and drive growth heading into second half of 2021
Corporate update highlights a well-capitalized company executing on its strategy in the high-growth U.S. solar industry
TORONTO and KNOXVILLE, Tenn., July 12, 2021 (GLOBE NEWSWIRE) -- Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR) is pleased to provide an outlook on its goals and objectives for the second half of 2021 with a clear focus on the rapidly growing U.S. solar market.
In the first half of 2021, the Company achieved several key milestones including the acquisition of two construction ready solar projects in New York, the expansion of the Company’s relationship with Boyd CAT, the signing of design agreement for a 56 megawatt (“MW”) solar project for a data center customer and the completion of a 1 MW project for a utility in Kentucky.
“Solar Alliance is committed to becoming the top commercial and industrial solar provider in the U.S. and the first half of 2021 saw us make great strides towards that goal,” said CEO Myke Clark. “The $5.7 million financing we completed earlier this year strengthened our balance sheet and provided us with the capital to move forward on our strategy of building, owning and operating our own solar assets. At the same time, our engineer, procure and construct business has grown substantially coming out of COVID-19 and will drive even greater growth for us moving forward. This balanced strategy – the high growth of building for third party customers combined with recurring revenue from solar assets we own – will allow us to deliver long term value to our customers and shareholders.”
Operational and Corporate Highlights – First Half, 2021
Solar Project Ownership. Solar Alliance accelerated its growth strategy with two solar project acquisitions in New York State. On May 26, 2021, the Company announced it had signed an agreement with Abundant Solar to build, own and operate a 350 (“kilowatt”) kW solar project in New York State. The second project, a 389 kW project also in New York State and announced on June 23, 2021, is also construction ready. Both projects are permitted and have signed long-term power purchase agreements. Final construction contracts for both projects are being negotiated.
Joint Development Agreement with Boyd CAT. On July 7, 2021, the Company signed a Joint Development Agreement with Boyd CAT, a regional Caterpillar dealer, and will be opening an office in Louisville, Kentucky. Solar Alliance is now the exclusive solar provider to Boyd CAT in Kentucky with a partnership that will accelerate solar adoption across the U.S. Southeast region. Boyd CAT is the authorized dealer of Cat® solar equipment for businesses and contractors across Kentucky, Southern Indiana, West Virginia and Southeastern Ohio. Under the Agreement, Boyd CAT and Solar Alliance will jointly pursue solar opportunities where Boyd CAT provides sales support and solar equipment, and Solar Alliance provides solar design, engineering and installation services.
1 MW Kentucky Project. On June 21, the Company completed a 1 MW solar project in Kentucky for Louisville Gas and Electric Company and Kentucky Utilities Company (“LG&E and KU”), part of the PPL Corporation family of companies. The solar system, which consists of Phase 3 and 4 of LG&E and KU’s Solar Share facility in Simpsonville, is now fully operational and producing energy for subscribing customers. A total of eight 500-kilowatt Solar Share sections are planned for the Simpsonville facility, for a total of 4 megawatts.
2.4 MW Bridgestone Project. On March 3rd, the Company completed a 2.4 MW commercial solar project for Bridgestone Americas Inc., a subsidiary of Bridgestone Corporation, in South Carolina. Companies like Bridgestone can realize significant electricity cost savings in addition to the clear environmental benefits of solar projects. This project is representative of the size and quality of project the Company continues to target.
56 MW Data Center Solar. On March 8, 2021, the Company signed a Solar Design Agreement with Green Data Center Real Estate Inc. (“Green Data”) to commence design and detailed feasibility analysis on an initial 56-megawatt ground and roof mount solar project at a hyperscale data center in Illinois. Design work continues and the Company continues to work with Green Data to determine maximum project size in addition to assessing other solar opportunities in the Green Data portfolio.
U.S. Solar Industry Update. 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. The ITC provisions of the latest infrastructure legislation remain in place in the latest draft.
Here are the key objectives the company has in sight for the remainder of 2021:
Development pipeline expansion. Solar Alliance is working with Abundant Solar to identify and partner on a larger pipeline of development-stage projects the Company may ultimately own and operate. The first two project acquisitions in New York State form a solid foundation for a more aggressive development and acquisition strategy.
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.
Large solar system sales. The Company continues to target larger customers for third-party solar system sales and installation, similar to the 2.4 MW Bridgestone project and the 1 MW Kentucky utility project. As the economy rebounds from COVID-19 impacts, commercial and industrial customers are re-engaging on larger projects and Solar Alliance is confident additional larger project sales will be realized.
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.
Joint Development Agreement with Canadian partner and expansion into Canada. Significant opportunities exist in the Canadian commercial solar sector. The Company is committed to identifying a Canadian partner to accelerate initial sales in Canada. Such a partnership would support sales opportunities the Company is already pursuing in Canada.
“Solar Alliance’s goal is to become a solar leader by focusing on high-margin, commercial, industrial and mid-sized utility solar projects. Our strategy is to expand rapidly in the U.S. and take advantage of opportunities as they arise in Canada. 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 second half of 2021 and beyond,” concluded Clark.
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 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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