Corporate update highlights a focused company executing on its strategy in the high-growth U.S. solar industry
TORONTO and KNOXVILLE, Tenn., Feb. 15, 2023 (GLOBE NEWSWIRE) -- Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR), a leading solar energy solutions provider focused on the commercial and utility solar sectors, is pleased to provide a summary of its key accomplishments in 2022 as well as an outlook for 2023.
“2022 was a transformative year for Solar Alliance as our team executed on several large solar projects for utility and commercial customers,” said CEO Myke Clark. “This strategic move to larger revenue projects resulted in record revenues in the third quarter of 2022 and set the stage for a strong finish to the year. Solar Alliance also energized the two New York solar projects we own. They are now generating clean, renewable electricity under long-term power purchase agreements with the local communities.”
“2023 began with the recent signing of a $1.8 million project in Tennessee which has contributed to a $3.8 million backlog of contracted projects. That backlog is expected to be constructed and converted into revenue this year, in addition to other new projects we are pursuing. Given the growing backlog and prospects for 2023 we have made profitability a corporate target for the year. In addition, we are pursuing corporate opportunities to augment our strong organic growth. Our focused strategy and work in recent years has created the foundation for a growing, sustainable company that offers a unique investment opportunity in the renewables sector,” concluded Clark.
Recent corporate highlights include:
- $1.8 million project signed. On February 13, 2023, the Solar Alliance announced it signed a contract for the design, engineering, and construction of an 872-kilowatt (‘kW”) commercial solar project for a manufacturing company in Tennessee. The project, with a $1.8 million capital cost, is scheduled to begin construction in Q2 2023 with completion targeted by October 2023.
- Project ownership target achieved. On January 3, 2023, the Company announced 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-kW project located in the Village of Cazenovia, and US1, a 389-kW project located in the Village of Union Springs, were both energized at the end of 2022 and are now generating clean, renewable electricity under long-term power purchase agreements with the local communities.
- Solar Alliance records largest quarterly solar revenue in Q3, 2022. On November 22, 2022, Solar Alliance announced that it had filed its unaudited financial results for the three and nine months ended September 30, 2022. Year to date revenue increased more than 90% based on record Q3 for Company’s commercial solar division. Revenue for the nine months ended September 30, 2022, was $4,381,445, an increase of 94% from $2,255,460 in the same period in 2021.
- Construction completed at 1 MW utility project in Knoxville. On February 22, 2022, the Company signed a contract with Knoxville Utilities Board, an independent agency of the City of Knoxville, for the design and installation of a 1 megawatt (“MW”) solar project in Knoxville, Tennessee. The project is currently being commissioned.
- 500-kw solar project for LG&U and KU in Kentucky completed. On July 27, 2022, Solar Alliance announced it had completed construction of a 500-kW utility solar project for LG&E and KU in Kentucky. This project represents a total of 1.5 megawatts of photovoltaic infrastructure engineered and installed by Solar Alliance for the utilities. The contract for this project includes an option for LG&E and KU to select Solar Alliance to build an additional 500-kW system at the same location.
- U.S. President Biden signed the Inflation Reduction Act (“IRA”). On August 16, 2022, President Biden signed the largest climate bill in U.S. history. For Solar Alliance and the Company’s customers, the new legislation provides significant savings on solar systems through increased tax credits that can reach as high as 60% of a project’s capital costs. As a company that is 100% focused on the U.S. solar industry, Solar Alliance is well positioned to continue its growth in the commercial and utility solar sector supported by the IRA.
Here are the key objectives the company has in sight for the remainder of 2023:
- Large solar system sales. The Company continues to target larger customers for third-party solar system sales and installations, specifically for utility and commercial customers. Solar Alliance’s strategy is to design, engineer and install commercial solar systems ranging in size up to several megawatts. This shift in focus to larger projects during 2022 has resulted in strong revenue growth that the Company expects to continue through 2023.
- Corporate growth opportunities. As Solar Alliance continues to see strong organic growth in the commercial division, the Company is also pursuing corporate opportunities to expand through partnerships, joint ventures or other initiatives. A strategic acquisition that meets the Company’s criteria of profitability, strong management team and geographic diversification could provide an accretive opportunity for growth should such an opportunity arise.
- Development pipeline expansion. Solar Alliance is working with third party developers to identify and partner on a larger pipeline of development-stage projects the Company may ultimately own and operate. Creating value through solar project development and ownership strengthens the Company’s balance sheet and diversifies our solar footprint.
- Expansion into Canada. Significant opportunities exist in the Canadian commercial solar sector. The federal government, in its 2022 Fall Economic Statement, announced that Canada will introduce investment tax credits (ITCs) of up to 30% for renewable energy technologies as it looks to close the competitive gap with U.S. The ITC in the U.S. has driven long-term growth in the renewables sector and the Company is now exploring options 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 while owning and operating our own assets. Our strategy is to grow aggressively, but responsibly, in the U.S. and take advantage of opportunities as they arise in Canada,” concluded Clark.
Myke Clark, CEO
About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is an energy solutions provider focused on the commercial, utility and community solar sectors. Our experienced team of solar professionals reduces or eliminates customers' vulnerability to rising energy costs, offers an environmentally friendly source of electricity generation, and provides affordable, turnkey clean energy solutions. Solar Alliance’s strategy is to build, own and operate our own solar assets while also generating stable revenue through the sale and installation of solar projects to commercial and utility customers. The technical and operational synergies from this combined business model supports sustained growth across the solar project value chain from design, engineering, installation, ownership and operations/maintenance.
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, legislative and political competitive developments, technological or operational difficulties, the ability to maintain revenue growth, the ability to execute on the Company’s strategies, the ability to complete the Company’s current and backlog of solar projects, the ability to grow the Company’s market share, the high growth US solar industry, the ability to convert the backlog of projects into revenue, the expected timing of the construction and completion of the 872 KW Tennessee solar project, the targeting of larger customers, potential corporate growth opportunities and the ability to execute on the key objectives in 2023. Consequently, actual results may vary materially from those described in the forward-looking statements.
“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”
