Toronto, Canada and Knoxville, Tennessee, August 26, 2022 – Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR, OTCQB: SAENF) announces it has filed its unaudited financial results for the three and six months ended June 30, 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 remains on track for a record year in commercial solar,” said CEO Myke Clark. “The combination of revenue to date, the contracted backlog of projects that will be built before the end of the year and significant work-in-process support a record year for Solar Alliance as we focus on larger commercial and utility solar projects.”
“In addition to this growing backlog and revenue stream, we commenced construction on our two company-owned solar projects in New York. These projects will generate long-term recurring revenue once they are completed by the end of September,” continued Clark. “Our strong results are further supported by the recently passed climate legislation in the United States which is expected to drive long-term growth in the solar industry and contains several provisions that will directly benefit Solar Alliance and our customers.”
Contracted project backlog exceeds $4,300,000. The projects in this backlog are expected to be built and recognized as revenue by the end of 2022.
- Revenue for the three months ended June 30, 2022, was $964,548 (Q2, 2021 – $1,420,885) as the company began constructing the large backlog of projects under contract.
- Expenses of $897,775 remained relatively stable (Q2, 2021 – $848,962) even as the Company increased backlog and construction activity.
- Net loss for the quarter of $208,254 (Q2, 2021 – $628,424).
- Accounts Receivable of $673,724 and Work in Process of $538,028 illustrate the increased rate of construction the Company is now experiencing as it constructs the $4,300,000 backlog of contracted projects.
- Addition of $353,174 to Company’s balance sheet representing the two New York solar projects which are now Solar Alliance owned assets. The amount represents the construction-in-progress at Q2, 2022 and will increase as construction is completed in Q3, 2022.
- Solar Alliance continued to successfully execute on its strategy 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.
- 500-kilowatt, US$750,000 solar project – On May 9, 2022 the Company announced it has signed a contract to design and build a 500-kilowatt solar project for a commercial customer in Kentucky. The project, with a capital cost of US$750,000, will be powered by more than 1,000 Cat® solar modules and is expected to be completed by the end of 2022.
- Construction continued on several of Solar Alliance’s large projects, including the 500-kW project for Louisville Gas and Electric and Kentucky Utilities which commenced construction on March 14, 2022.
- Construction commenced on company-owned solar projects in New York. The two projects, which represent a combined 687-kW, are now under construction and are expected to being operating later this year. Once operational, the projects will provide recurring revenue under 30-year power purchase agreements with local municipalities. The two projects represent proof-of-concept for the Company’s asset ownership strategy and will form the basis for a growing portfolio of assets under ownership.
- Subsequent to Q2, on August 16, 2022 S. President Biden signed the Inflation Reduction Act (“IRA”), 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 for the remainder of 2022:
- Development pipeline expansion. Solar Alliance is assessing opportunities to partner and/or acquire 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.
- Construction of backlog. Despite global supply chain issues, the Company has secured the required materials for the contracted projects and anticipates converting all of the $4,300,000 in contracted backlog into revenue in 2022.
- Large solar system sales building backlog. 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 Knoxville utility project.
“Our key focus remains on executing our business plan and staying on track for what we see ahead as a record year in commercial solar growth. With the continued growth in the U.S. solar market and our growing market share in the U.S. Southeast, Solar Alliance remains a unique opportunity in the ESG investing space,” he added.
Myke Clark, CEO