Solar Alliance provides 2022 year-in-review and outlook for continued growth in 2023
February 15 2023 - 7:00AM
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 provide a summary of its key accomplishments in 2022 as
well as an outlook for 2023.
“2022 was a transformative year for Solar
Alliance as our team executed on several large solar projects for
utility and commercial customers,” said CEO Myke Clark. “This
strategic move to larger revenue projects resulted in record
revenues in the third quarter of 2022 and set the stage for a
strong finish to the year. Solar Alliance also energized the two
New York solar projects we own. They are now generating clean,
renewable electricity under long-term power purchase agreements
with the local communities.”
“2023 began with the recent signing of a $1.8
million project in Tennessee which has contributed to a $3.8
million backlog of contracted projects. That backlog is expected to
be constructed and converted into revenue this year, in addition to
other new projects we are pursuing. Given the growing backlog and
prospects for 2023 we have made profitability a corporate target
for the year. In addition, we are pursuing corporate opportunities
to augment our strong organic growth. Our focused strategy and work
in recent years has created the foundation for a growing,
sustainable company that offers a unique investment opportunity in
the renewables sector,” concluded Clark.
Recent corporate highlights include:
- $1.8 million project
signed. On February 13, 2023, the Solar Alliance announced
it signed a contract for the design, engineering, and construction
of an 872-kilowatt (‘kW”) commercial solar project for a
manufacturing company in Tennessee. The project, with a $1.8
million capital cost, is scheduled to begin construction in Q2 2023
with completion targeted by October 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 and both are now in operation. VC1, a 298-kW
project located in the Village of Cazenovia, and US1, a 389-kW
project located in the Village of Union Springs, were both
energized at the end of 2022 and are now generating clean,
renewable electricity under long-term power purchase agreements
with the local communities.
- Solar Alliance records largest quarterly solar revenue
in Q3, 2022. On November 22, 2022, Solar Alliance
announced that it had filed its unaudited financial results for the
three and nine months ended September 30, 2022. Year to date
revenue increased more than 90% based on record Q3 for Company’s
commercial solar division. Revenue for the nine months ended
September 30, 2022, was $4,381,445, an increase of 94% from
$2,255,460 in the same period in 2021.
- Construction completed at 1 MW utility project in
Knoxville. On February 22, 2022, the Company signed a
contract with Knoxville Utilities Board, an independent agency of
the City of Knoxville, for the design and installation of a 1
megawatt (“MW”) solar project in Knoxville, Tennessee. The project
is currently being commissioned.
- 500-kw solar project for LG&U and KU in Kentucky
completed. On July 27, 2022, Solar Alliance announced it
had completed construction of a 500-kW utility solar project for
LG&E and KU in Kentucky. This project represents a total of 1.5
megawatts of photovoltaic infrastructure engineered and installed
by Solar Alliance for the utilities. The contract for this project
includes an option for LG&E and KU to select Solar Alliance to
build an additional 500-kW system at the same location.
- U.S. President Biden signed
the Inflation Reduction Act (“IRA”). On August 16, 2022,
President Biden signed 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 the company has in
sight for the remainder of 2023:
- Large solar system
sales. The Company continues to target larger customers
for third-party solar system sales and installations, specifically
for utility and commercial customers. Solar Alliance’s strategy is
to design, engineer and install commercial solar systems ranging in
size up to several megawatts. This shift in focus to larger
projects during 2022 has resulted in strong revenue growth that the
Company expects to continue through 2023.
- Corporate growth
opportunities. As Solar Alliance continues to see strong
organic growth in the commercial division, the Company is also
pursuing corporate opportunities to expand through partnerships,
joint ventures or other initiatives. A strategic acquisition that
meets the Company’s criteria of profitability, strong management
team and geographic diversification could provide an accretive
opportunity for growth should such an opportunity arise.
- Development pipeline
expansion. Solar Alliance is working with third party
developers to identify and partner on a larger pipeline of
development-stage projects the Company may ultimately own and
operate. Creating value through solar project development and
ownership strengthens the Company’s balance sheet and diversifies
our solar footprint.
- Expansion into
Canada. Significant opportunities exist in the Canadian
commercial solar sector. The federal government, in its 2022 Fall
Economic Statement, announced that Canada will introduce investment
tax credits (ITCs) of up to 30% for renewable energy technologies
as it looks to close the competitive gap with U.S. The ITC in the
U.S. has driven long-term growth in the renewables sector and the
Company is now exploring options in Canada.
“Solar Alliance’s goal is to become a solar
leader by focusing on high-margin, commercial, industrial and
mid-sized utility solar projects while owning and operating our own
assets. Our strategy is to grow aggressively, but responsibly, in
the U.S. and take advantage of opportunities as they arise in
Canada,” concluded Clark.
Myke Clark, CEO
For more information: |
Investor RelationsMyke Clark,
CEO604-359-5178mclark@solaralliance.com |
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 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,
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.
“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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