Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR) is pleased to announce it has signed a binding Letter of Intent (the “Agreement”) with Abundant Solar Power Inc. (“Abundant”) to build, own and operate a 350 kilowatt (“kW”) solar project in New York State (the “Project”).
The construction-ready Project is permitted and is supported by a 30 year power purchase agreement. This Project will be the first solar project in the Company’s portfolio of operating solar assets and will generate a recurring revenue stream over its 30 year life.
“This project in New York State represents a significant catalyst for Solar Alliance and clearly outlines the potential for strong growth we see in our ability to build, own and operate assets in the US market” said Solar Alliance CEO Myke Clark. “This project is ready to build and is backed by a 30 year power purchase agreement that will provide a recurring revenue stream to Solar Alliance. Abundant is a respected developer of solar projects and we are confident we can build on our relationship in order to access a larger pipeline of solar projects that we can develop, own and operate.”
Solar Alliance anticipates signing an Engineering, Procurement and Construction (“EPC”) contract with Abundant. Construction on the Project is expected to commence this summer and is anticipated to be in operation by the end of 2021.
“We are pleased to be working with Solar Alliance on this project and see the potential for an expanded relationship moving forward,” said Abundant’s CEO Richard Lu. “Abundant Solar has an extensive pipeline of solar projects in development and we see strong syngergies between our two teams. We will be working diligently with Solar Alliance to complete this project on time and on budget this year.”
The net capital cost for the project is expected to be approximately US$525,000 and will be financed by Solar Alliance either through equity or a combination of debt and equity. As part of the Company’s expansion strategy, Solar Alliance is also assessing opportunities to acquire or partner on earlier stage develop projects that would eventually be built, owned and operated by the Company. This complements Solar Alliance’s growing business of designing, engineering and installation solar systems for third party owners.
“Solar Alliance has made the strategic decision to pursue growing, near term revenue opportunities in addition to building, owning and operating our own solar projects. This allows us to generate revenue to support our operations while we grow our portfolio of assets under ownership, concluded Clark.
