Toronto, Canada and Knoxville, Tennessee, October 23, 2023 – Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR), a leading solar energy solutions provider focused on the commercial and industrial solar sector, is pleased to provide a corporate and operational update for Q3 2023.
“The third quarter of 2023 saw continued progress as our team focused on executing on our current backlog while targeting additional large solar projects,” said CEO Myke Clark. “The second half of 2023 has been extremely busy to date as we build out our backlog of contracted projects and translate that backlog into revenue. We have managed our contracted backlog, which is approximately $5.8 million, to a level that we feel allows rapid conversion to revenue while still maintaining our highest standards of execution. We expect the majority of this $5.8 million in backlog to be converted by the end of 2023, with the full amount converted by the end of Q1 2024. Given our backlog and outlook for the remainder of 2023 we have made achieving profitability a corporate target for the year, and we are working diligently to achieve that goal.”
Key corporate highlights and objectives include:
Contracted project backlog of $5.8 million. The Company continued to add to its backlog of contracted projects in Q3 2023. This solar project backlog provides a strong foundation for growth during the balance of 2023 and into 2024. The backlog has been driven by the transition to larger commercial solar system sales and is backed by several key projects:
- Construction commenced on a 565-kW commercial solar project for a manufacturing client in Tennessee announced on May 31, 2023. The project is currently targeted for completion by the end of 2023.
- Construction commenced on an 872-kW solar project in Tennessee announced on February 13, 2023, with a $1.8 million capital cost. Design and engineering on the project began in Q2 2023 with completion targeted by the end of 2023.
- Two projects, 250-kW and 299-kW, for a Tennessee client announced on July 10, 2023. The two projects, with a capital cost of $1.58 million, are scheduled to begin construction in Q4 2023 and are currently targeted for completion in Q1 2024.
Affiliate Program launched. In support of the Company’s organic growth strategy in the Southeast U.S., the Company announced the launch of the Solar Alliance Affiliate Program on September 12, 2023 (the “Affiliate Program”). The Affiliate Program provides independent sales organizations with access to branded marketing materials, design, engineering and installation management services. In return, the affiliates bring commercial solar opportunities to Solar Alliance. The Affiliate Program is initially focused on the Southeast U.S. market and has the potential to be expanded to additional regions in the U.S. Solar Alliance has signed the first Affiliate Agreement with Market Street Solar, a North Carolina-based company. The Company is assessing additional Affiliate Program members as it expands its footprint in the Southeast U.S.
Large solar system sales. The Company continues to target larger customers for third-party solar system sales and installations, specifically for commercial and industrial customers. Solar Alliance’s strategy is to design, engineer and install commercial solar systems ranging in size up to several megawatts.
Corporate growth opportunities. Solar Alliance continues to source and assess acquisition opportunities that meet the Company’s criteria of profitability, market opportunity and strong management teams. The Company is also pursuing corporate opportunities to expand through partnerships, joint ventures or other initiatives.
“We are committed to exploring all accretive and strategically opportunistic North American acquisition opportunities, with a bias towards the U.S. market. We remain committed to growing responsibly while avoiding excessive dilution. I believe this approach will allow for greater long-term success for Solar Alliance and our shareholders. Our team continues to reduce costs, increase revenues and increase margins as we experience growth in the U.S. commercial solar market. As a result, we have the flexibility to wait for more favourable market conditions and acquisition opportunities. This approach is particularly important during the difficult market conditions many small cap renewable companies are experiencing,” 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 Company currently owns two operating solar projects in New York and actively pursuing opportunities to grow its ownership pipeline. 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; the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the construction sector, capital market conditions, restriction on labour and international travel and supply chains; 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.
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