Toronto, Canada and Knoxville, Tennessee, June 21st, 2023 – 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 announce it has sold a 67% interest in the Company’s two operating solar projects in the state of New York for consideration of USD $973,360.72. Solar Alliance will maintain a 33% interest in the two projects (the “Projects”), enabling the Company to continue to benefit from the economics of the Projects.
VC1, a 298-kilowatt (“kW”) project located in the Village of Cazenovia, and US1, a 389-kW project located in the Village of Union Springs, both received permission to operate in December 2022 and are now generating clean, renewable electricity under long-term power purchase agreements with the local communities. The Projects were constructed by Solar Alliance during 2022 as a proof-of-concept for the Company’s asset ownership strategy.
“Solar Alliance created significant value by taking these projects from late-stage development, through construction and financing, and into operation,” said CEO Myke Clark. “The decision to monetize a portion of that value reflects our prudent approach to capital allocation and focus on maximizing returns on our capital deployed, while enabling us to maintain a meaningful ownership interest in these projects moving forward.”
“These community solar projects provided the perfect opportunity for our team to illustrate proof-of-concept in the construction management, tax equity financing and legal structuring of solar asset ownership. Armed with this invaluable experience, the next phase of our asset ownership strategy involves seizing ownership opportunities in the thriving commercial solar sector, where our design, engineering and installation division is already seeing strong deal flow. Our strategic divestment of interests in our first two owned projects represents a pivotal moment in our asset ownership strategy, propelling Solar Alliance towards additional value generating opportunities,” Mr. Clark concluded.
The sale of the interest in the Projects was completed through the settlement of a promissory note due to the acquirer that had a principal and interest balance of USD $973,360.72, eliminating this obligation from Solar Alliance’s balance sheet.
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 statements in this news release include, but are not limited to, the continued benefit from the economics of the Projects, maintaining a meaningful ownership interest in the Projects, seizing ownership opportunities in the thriving commercial solar sector and propelling Solar Alliance towards additional value generating opportunities. 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 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.”