RE:financials? Solar Alliance (SOLR) has signed a binding letter of intent with Abundant Solar Power for its first U.S. operating asset.
Solar will build, own and operate the 350 kilowatt solar project in New York State.
The net capital cost is expected to be US$525,000 to be financed by Solar Alliance through equity or a combination of debt and equity.
The project is permitted and supported by a 30-year power purchase agreement.
The company expects the project to generate a recurring revenue stream over its 30-year life.
Construction is slated to begin this Summer with the project in operation by the end of 2021.
Myke Clark, Solar Alliance CEO, commented,
"This project in New York State represents a significant catalyst for Solar Alliance and clearly outlines the potential for strong growth we see in our ability to build, own and operate assets in the U.S. market.
Abundant is a respected developer of solar projects and we are confident we can build on our relationship in order to access a larger pipeline of solar projects that we can develop, own and operate."
Richard Lu, Abundant’s CEO, added,
"We are pleased to be working with Solar Alliance on this project and see the potential for an expanded relationship moving forward. Abundant Solar has an extensive pipeline of solar projects in development and we see strong synergies between our two teams."
Solar Alliance Energy is an energy solutions provider focused on residential, commercial and industrial solar installations.
Solar Alliance (SOLR) is up by 8.47 per cent and is currently trading at $0.32 per share as of 9:32 am ET.