Solar Alliance Energy Inc.
Solar Alliance Signs Agreement for 715 kW Solar Project in Florida and Option Agreement for Additional 25 MW Solar Project Pipeline
Wednesday, June 5, 2019 7:00 AM
VANCOUVER, BC & KNOXVILLE, TN / ACCESSWIRE / June 5, 2019 / Solar Alliance Energy Inc. ('Solar Alliance' or the 'Company') (TSX-V: SOLR, OTC: SAENF) is pleased to announce it has entered into a definitive agreement with BE Trilogy Solar Project LLC ("Trilogy") for construction management services for a 715 kilowatt ground mount solar installation in Groveland, Florida. Construction on the project started in late May, 2019 and is expected to be completed by Q3, 2019. The energy produced from the solar project is estimated to provide 100% of the power required for the Cascades of Groveland Homeowners Association. This is the first non-utility 3rd party owned solar array that is powering a non-profit in the state of Florida.
Solar Alliance is also pleased to announce it has signed a Solar Development Agreement ("Development Agreement") with Sundamental, LLC, a company affiliated with Trilogy, for an exclusive option for Solar Alliance to provide construction management or full engineer, procurement and construction ("EPC") services for a pipeline of up to 18 solar projects in New Jersey, Illinois, Texas and California with an estimated capital construction cost of $39 million for a total of approximately 25 megawatts. The pipeline of customers includes companies such as an Illinois University, a New Jersey Hospital, a utility, and a steel Company.
Profit attributable to Solar Alliance will vary by project depending on the type of contract signed for each. EPC projects generate higher profit margins while construction management contracts generate lower revenue totals but higher margins. The Company anticipates the projects in the pipeline will be financed by Sundamental LLC or an affiliate that will provide funding for equipment and other costs of goods. The projects in the pipeline are all late stage developments and an assessment is already underway to prioritize each of the projects in the pipeline and move them towards construction.
The Development Agreement also contains an option for Solar Alliance to contribute equity to any of the 18 projects in the pipeline, which could result in another recurring revenue stream to Solar Alliance.
"Solar Alliance is excited to be working with Sundamental on these solar projects as together our two companies will create substantial synergies and benefits for each other," said Solar Alliance CEO Myke Clark. "Sundamental has created a robust pipeline of solar projects across diverse jurisdictions and working with them presents a tremendous opportunity to rapidly grow our business. Our project management approach to projects in new jurisdictions allows us to leverage our extensive solar experience and deliver a quality project to the customer, which we look forward to doing with Sundamental," concluded Clark.
"The technical expertise of the Solar Alliance team is the perfect fit for our project pipeline," said Sundamental LLC CEO Terry Warren. "We have developed a strong portfolio of solar projects ranging in size from several hundred kilowatts to several megawatts. Those projects need a strong technical team to ensure they are built on time and on budget. Working with Solar Alliance will help us complete these projects and deliver ongoing value for our shareholders," concluded Warren.
The Trilogy Florida project adds to our growing pipeline of large scale solar projects, which includes a 2.4 MW project in South Carolina and the 519 kW solar project with Onni in Manhattan Beach, California. Combined with the Company's growing pipeline of medium sized solar projects and increasing sales from the residential SunBox system, this project will contribute to a revenue base that continues to grow and diversify across projects and jurisdictions.
Myke Clark, CEO
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Solar Alliance Sales
Myke Clark, CEO
About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is an energy solutions provider focused on residential, commercial and industrial solar installations. The Company operates in California, Tennessee, North/South Carolina and Kentucky and has an expanding pipeline of solar projects. Since it was founded in 2003, the Company has developed wind and solar projects that provide enough electricity to power 150,000 homes. Our passion is improving life through ingenuity, simplicity and freedom of choice. Solar Alliance reduces or eliminates customers' vulnerability to rising energy costs, offers an environmentally-friendly source of electricity generation, and provides affordable, turnkey clean energy solutions.
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 and political competitive developments and technological or operational difficulties. Consequently, actual results may vary materially from those described in the forward-looking statements.
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SOURCE:Solar Alliance Energy Inc.