Toronto, Canada and Knoxville, Tennessee, July 18, 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 the first half of 2023.
“The first half of 2023 has seen Solar Alliance successfully execute on its growth strategy as our team has built a $6.6 million backlog of contracted projects,” said CEO Myke Clark. “This is the largest contracted backlog of commercial solar projects in our company’s history, reflecting a successful transition of our business into larger commercial and industrial solar systems and lays the groundwork for continued growth into 2024. To supplement this organic growth, we have also entered into a Letter of Intent to acquire a growing, profitable Canadian commercial solar company in what we anticipate will be a transformative transaction for Solar Alliance.”
First half 2023 Highlights
Letter of Intent to acquire Canadian solar company. On May 18, 2023, Solar Alliance announced that it has entered into an arm’s length Letter of Intent dated May 16, 2023 (the “LOI”) to acquire a growing, profitable Canadian solar company (the “Target”) in a predominantly share-based transaction (the “Transaction”).
The Target is a growing commercial and utility solar company based in Alberta and at the time of the signing of the LOI had year-to-date unaudited 2023 fiscal year (July 31, 2023 year-end) revenue of $5,801,023. The Target has a backlog of contracted projects totaling more than $5.6 million and expects continued revenue growth this year and beyond.
The Target is a Western Canadian leader in solar for commercial and utility customers, with more than 33 MW of commercial and utility solar projects installed. The non-binding LOI provides 90 days of exclusivity to complete due diligence, determine the final structure of the Transaction (based on advice from legal, tax and professional advisors and in accordance with applicable corporate, tax and securities laws) and to enter into a binding, definitive agreement. Due diligence is continuing and the Company will release updates as required. See the Company’s press release dated May 18, 2023, for further details on the Transaction.
Contracted project backlog increased to $6.6 million. The first half of 2023 has seen significant growth in the Company’s backlog of contracted projects. This is a record commercial solar project backlog for Solar Alliance and provides a strong foundation for growth during the balance of 2023 and into 2024. The backlog growth has been driven by the transition to larger commercial solar system sales and is backed by several key projects:
- Two projects, 131-kW and 43-kW, for a Tennessee client announced on July 17, 2023. The projects have a combined capital cost of $530,000. The two projects are scheduled to begin construction in Q3 2023 and are currently targeted for completion 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 Q3 2023 and are currently targeted for completion in Q1 2024.
- A 565-kW commercial solar project for a manufacturing client in Tennessee announced on May 31, 2023. The project, with a $1.47 million capital cost, is scheduled to begin construction in Q3 2023 and is currently targeted for completion by the end of 2023.
- 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.
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 state and both are now in operation. On June 21, 2023, the Company announced it sold a 67% interest in the two projects for consideration of USD $973,360.72.
Solar Alliance will maintain a 33% interest in the two projects, enabling the Company to continue to benefit from the economics of the New York projects. Solar Alliance created significant value by taking these projects from late-stage development, through construction and financing, and into operation. The decision to monetize a portion of that value reflects a prudent approach to capital allocation and focus on maximizing returns on capital deployed.
“The Solar Alliance team is focused on delivering continued growth through the end of 2023 and into 2024. The majority of our contracted backlog is expected to be constructed and converted into revenue this year, in addition to other new projects we are pursuing in the Southeast U.S. Given our growing backlog and our outlook for 2023 we have made achieving profitability a corporate target for the year. In addition, we are continuing due diligence on the Canadian acquisition opportunity and see significant potential for growth in the Canadian market. Our demonstrated organic growth strategy, combined with this significant acquisition opportunity, has created the foundation for a company that we believe offers a unique investment opportunity in the renewables sector,” 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: the completion of the Transaction, the ability to complete the Company’s solar projects on the anticipated timelines, the ability to pursue new solar projects 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 and convert such projects into revenue and the ability to grow the Company’s market share. 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.”