Solar Alliance acquires New York solar project
Including the two projects Solar Alliance now owns, the Company is targeting a total of 1.7 megawatts (MW) of projects under ownership and operation by the end of 2022, more than double current levels.
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TORONTO and KNOXVILLE — Solar Alliance Energy Inc. announces it has completed the acquisition of a 389-kilowatt (kW) project in New York State from Abundant Solar Power Inc. The project acquisition, first announced on June 23, 2021, represents the second project Solar Alliance will own and operate under a 25-year power purchase agreement. A total of 687-kW of solar projects are now owned by the Company and will contribute recurring revenue once they achieve commercial operations in Q2, 2022.
Solar Alliance is targeting the New York solar market for additional growth opportunities in 2022. Including the two projects Solar Alliance now owns, the Company is targeting a total of 1.7 megawatts (MW) of projects under ownership and operation by the end of 2022, more than double current levels. These projects represent a fundamental advancement of the Company’s strategy given their recurring revenue and asset value. Solar Alliance is also assessing opportunities to partner with developers to significantly increase this 1.7 MW target.
“Solar Alliance continues to execute on our aggressive growth strategy with the acquisition of this second solar project in New York State,” said CEO Myke Clark. “Our target of 1.7 MW of operating solar projects by the end of 2022 is ambitious and achievable and represents substantial progress for Solar Alliance as we build a stable, growing portfolio of assets. Our team also continues to design, engineer and construct large projects for commercial and utility customers. We have seen unprecedented growth in the size and number of large projects we are building for third-party customers. This strategy – combining sales to third party customers with the stable, recurring revenue from our own solar assets – is now paying strong dividends and we anticipate continued growth in both sectors in 2022.”
Construction will commence in early 2022 and the project will have a Commercial Operation Date in Q2, 2022. Construction on the Company’s other solar project in New York, a 298-kW project, will take place simultaneously to take advantage of cost savings realized by the bulk purchasing of materials. Panels have been procured for both projects, both projects are fully permitted and both projects have long-term power purchase agreements with local government partners.
The net capital cost for the project is expected to be approximately US$640,000 and will be financed by Solar Alliance through a combination of construction debt, long term debt, equity and tax equity. The Company targets an unlevered internal rate of return of 7-9% for projects at this stage of development and this project falls within those parameters.