Company continues to execute on its strategy in the high-growth U.S. solar industry
TORONTO and KNOXVILLE, Tenn., May 02, 2023 (GLOBE NEWSWIRE) -- Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR, OTC: SAENF), a leading solar energy solutions provider focused on the commercial and utility solar sectors, announces it has filed its audited financial results for the quarter and year ended December 31, 2022. The Company’s Financial Statements and related Management’s Discussion and Analysis are available under the Company’s profile at www.sedar.com.
“Solar Alliance continued to successfully execute on our strategy as our team delivered solid revenue growth during 2022,” said CEO Myke Clark. “Our transition to larger commercial and utility projects has resulted in strong growth and a substantial backlog of projects under contract, positioning us very well for 2023 and beyond.”
“During 2022, Solar Alliance made significant investments in our team, which resulted in a strong revenue growth profile. As a direct result of our investment over the last year, we have the ability to scale significantly with our current team. We are also committed to increasing project margins and ensuring our expenses are appropriate for our contracted project pipeline, as we target to achieve profitability in the coming quarters.”
“In addition to the revenue growth achieved in 2022, we energized our two company-owned solar projects in New York – a significant strategic milestone for Solar Alliance. As we look ahead, we are currently pursuing corporate opportunities to augment our organic growth profile, in circumstances where opportunities are both strategically and economically attractive. We believe our focused strategy has created the foundation for a growing, sustainable company that offers a unique investment opportunity in the renewables sector, and we are increasingly confident in the road ahead,” concluded Clark.
Key financial highlights for 2022
- Revenue grew 31% year-over-year to $4,825,984 (2021 - $3,666,383) for the year ended December 31, 2022, as the company grew its commercial and utility solar business.
- Cost of sales of $4,371,698 (2021 - $3,002,801) resulting in a gross profit of $454,286 (2021 - $663,582).
- Cash balance of $650,061 (2021 - $2,169,258) and a restricted cash balance of $471,331 (2021 – Nil), as of December 31, 2022.
- Customer deposits and deferred revenue of $399,069 (2021 - $46,424), the result of one large project that commenced in 2022 and completed in 2023.
- A net loss of $2,746,914 (2021 - $448,864) as the Company continued to make investments in its growing team and project portfolio. The change was driven in part by increased headcount as the Company continues to build its team to take advantage of opportunities for continued growth through larger projects. The Company also experienced increased one-time costs related to the New York operating solar projects and corporate development initiatives.
- Cash used in operating activities was $1,484,220 (2021 - $3,635,232).
Key business highlights for 2022
- Contract with U.S. Army Corps of Engineers. On September 20, 2022, the Company announced it signed a contract with the U.S. Army Corps of Engineers Nashville District to install a solar system at the Lake Cumberland Resource Manager’s Office and Maintenance Facility located in Somerset, Kentucky. The Project consists of a 52-kilowatt (“kW”) roof mount solar array and a 51-kW carport solar array.
- 500-kilowatt solar project for LG&E and KU in Kentucky completed. On July 27, 2022, the Company announced it has completed construction of a 500-kW solar project for Louisville Gas and Electric and Kentucky Utilities Company. 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.
- Construction substantially completed at 1-MW Knoxville Utilities Board project. The Company signed a contract on February 22, 2022, with Knoxville Utilities Board (“KUB”), an independent agency of the City of Knoxville, for the design and installation of a 1-megawatt solar project in Knoxville, Tennessee. KUB provides electric, natural gas, water, wastewater, and fiber broadband services to more than 473,000 customers in Knoxville. The project builds on Solar Alliance’s expanding utility customer project base, following successful solar initiatives with other regional utilities. It also builds on the company’s support program for utilities which includes grant work, financial modeling, energy modeling, and EV charger deployment. Construction was substantially completed in 2022.
- Construction commences at 526-kW Tennessee project. Construction continued at a 526-kW roof mount solar system at AESSEAL’s U.S. headquarters in Rockford, Tennessee. Solar Alliance was contracted to design, engineer and install the project.
- Project ownership target achieved. On January 3, 2023, the Company announced it had completed the construction of the Company’s first two solar projects in New York and both are now in operation. A 298-kW project and a 389-kW project 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.
- 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.
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 in this press release include, but is not limited to the ability to scale, increasing project margins, targeting profitability and the Company offering a unique investment opportunity in the renewables sector space. 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 Company’s solar projects, 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."
