- US1 Project has an installed capacity of 389.7kW DC
- VC1 Project has an installed capacity of 297.9kW DC
- Both projects have power purchase agreement (“PPA”) to sell electricity to the municipality via remote net metering
Toronto, Ontario, June 21, 2023 — SolarBank Corporation (CSE: SUNN; OTCQX: SUUNF; FSE: GY2) (“SolarBank” or the “Company”) is pleased to announce that it has acquired a 67% interest in the US1 Project and VC1 Project, each located in New York (the “Projects”). Operating as an Independent Power Producer is a key pillar of the Company’s business model.
The first project is the US1 Project which is a ground-mount solar power project located at a municipally-owned utility campus in the Village of Union Springs, N.Y. Per the PPA with the municipality, the system will sell electricity to the municipality via remote net metering. The system has an installed capacity of 389.7kW DC and is expected to generate an estimated 578,000 kWh of clean, renewable energy in its first year of operation.
The second project is the VC1 Project which is a ground-mount solar power project located at a municipally-owned utility campus in the Village of Cazenovia, N.Y. Per the PPA with the municipality, the system will sell electricity to the municipality via remote net metering. The system has an installed capacity of 297.9kW DC and is expected to generate an estimated 387,000 kWh of clean, renewable energy in its first year of operation.
“When we completed our go-public transaction, one of the primary goals was to expand the Company’s business model to include independent power producer operations. I am very proud that we have achieved this goal and have plans to significantly grow our portfolio of owned and operated projects from here,” said Dr. Richard Lu, Chief Executive Officer at SolarBank. “These two projects will generate nearly 1,000,000 kWh of clean, renewable energy in their first year, which is terrific in our bid to battle climate change. We collected nearly $300,000 in NYSERDA incentives between the projects and will retain majority ownership of each with agreements in place for long-term revenue through the sale of electricity to the municipalities.”
The acquisition of the Projects was completed through the settlement of a promissory note due from a customer that [had a principal balance of $1,206,004 (USD $891,158)]. The outstanding principal and interest under the note were settled by the customer through the transfer of a 67% interest in the Projects to the Company through the acquisition of a 67% interest in a holding company that has a 100% interest in the Projects.
The Company notes that the execution of the Company’s growth strategy depends upon the continued availability of third-party financing arrangements for the Company and its customers and the Company’s future success depends partly on its ability to expand the pipeline of its energy business in several key markets. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for solar and battery storage power, which could cause demand for the Company’s services to decline. Further the forecasted MW capacity of the Projects may not be reached. Please refer to “Forward-Looking Statements” for additional discussion of the assumptions and risk factors associated with the statements in this press release.