TORONTO and KNOXVILLE, Tenn., April 15, 2024 (GLOBE NEWSWIRE) — 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 update for the first quarter of 2024.
“The first quarter has seen our team execute on several large projects and continue the sales growth that we experienced last year. We remain committed to growing the Company with an emphasis on profitability and we believe our business plan and contracted backlog support this strategy moving forward. The Solar Alliance team continues to see increased demand for commercial solar projects, and we remain focused on larger, higher margin commercial solar projects to support our growth. In addition to executing on larger projects, we are now experiencing strong demand for solar projects for small and medium-sized businesses in rural communities. We are now at the stage in our evolution as a company that we can take advantage of the growth opportunities across both small and larger project sectors,” said CEO Myke Clark.
Large Project focus momentum. 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. Current installations include:
- Construction continued 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 in Q2, 2024.
- Construction continued on an 872-kW solar project in Tennessee announced on February 13, 2023. The project is currently targeted for completion in Q2, 2024.
The Company continued to install its backlog of contracted projects in Q1 2024 while adding to the backlog through new project sales. The Company has managed the backlog to a level that potentially allows for the rapid conversion to revenue while still maintaining our highest standards of execution. Solar Alliance is confident this solar project backlog, combined with a robust sales funnel, provides a strong foundation for the remainder of 2024.
Small and medium-sized project growth accelerates. A key component for small businesses wanting to reduce utility costs are Rural Energy for America Program (“REAP”) grants and loans from the United States Department of Agriculture (“USDA”). Supported by funding from the U.S. Inflation Reduction Act, REAP promotes lower energy costs and resilience while opening new income opportunities for the rural small businesses and agri-businesses the USDA serves.
Solar Alliance has dedicated sales resources to supporting the increased demand created by the REAP program and has signed several small and medium-sized projects as a result. These projects are in addition to the sales funnel of larger projects the Company continues to pursue.
- During Q1, 2024 Solar Alliance sold or completed the installation of small, rural businesses with more than $1 million in capital costs. Those projects include:
- A 113-kilowatt (“kW”) solar system for a Tennessee manufacturer with a capital cost of $305,000.
- A 28-kW, $195,000 solar and energy storage system for a farm in Tennessee.
- A 49-kW, $266,000 commercial solar and energy storage system in Tennessee.
- A 92-kW, $269,000 commercial solar system in Tennessee.
- Solar Alliance worked with clients to submit $1.1 million in USDA grant-supported projects in March 2024. The Company is also working with clients to submit projects with a combined $1.3 million capital cost for the June 2024 grant submission deadline. These submitted projects are subject to approval by the USDA.
“A steady stream of REAP eligible projects is good for our business and a tremendous benefit for businesses in rural communities,” said U.S. General Manager Jon Hamilton. “Our clients are benefiting from the best combination of incentives for solar in our area, they are bringing federal money into their communities, and they are also demonstrating to other businesses that solar with energy storage can positively impact their bottom line.”
BC Call for Power. In British Columbia, Canada, the utility BC Hydro formally launched the 2024 Call for Power on April 3, 2024. The Company has maintained a legacy wind project in the province and will be reviewing the RFP and any opportunities to participate.
“Solar Alliance continues to see increasing demand for commercial solar in the Southeast U.S. As a first mover in the market, we combine the stability of an operating business with exposure to a vast addressable market for our product offering. We also continue to look for additional opportunities in the broader renewable energy 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: 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 565-kW and 872 KW Tennessee solar project; the commitment to growing the Company’s business with an emphasis on profitability; the targeting and focus on larger customers and solar projects; the potential to rapidly convert the Company’s backlog of solar projects to revenue; 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 2024. 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.”
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