Solar Alliance on track for record year in commercial solar as growth continued in Q2
August 26 2022 - 6:00AM
Solar Alliance Energy Inc. (‘Solar Alliance’ or the
‘Company’) (TSX-V: SOLR, OTCQB: SAENF)
announces it has filed its unaudited financial results for the
three and six months ended June 30, 2022. The Company’s Financial
Statements and related Management’s Discussion and Analysis are
available under the Company’s profile at www.sedar.com.
“Solar Alliance remains on track for a record
year in commercial solar,” said CEO Myke Clark. “The combination of
revenue to date, the contracted backlog of projects that will be
built before the end of the year and significant work-in-process
support a record year for Solar Alliance as we focus on larger
commercial and utility solar projects.”
“In addition to this growing backlog and revenue
stream, we commenced construction on our two company-owned solar
projects in New York. These projects will generate long-term
recurring revenue once they are completed by the end of September,”
continued Clark. “Our strong results are further supported by the
recently passed climate legislation in the United States which is
expected to drive long-term growth in the solar industry and
contains several provisions that will directly benefit Solar
Alliance and our customers.”
Financial highlights
- Contracted project backlog exceeds
$4,300,000. The projects in this backlog are expected to be built
and recognized as revenue by the end of 2022.
- Revenue for the three months ended
June 30, 2022, was $964,548 (Q2, 2021 - $1,420,885) as the company
began constructing the large backlog of projects under
contract.
- Expenses of $897,775 remained
relatively stable (Q2, 2021 - $848,962) even as the Company
increased backlog and construction activity.
- Net loss for the quarter of
$208,254 (Q2, 2021 - $628,424).
- Accounts Receivable of $673,724 and
Work in Process of $538,028 illustrate the increased rate of
construction the Company is now experiencing as it constructs the
$4,300,000 backlog of contracted projects.
- Addition of $353,174 to Company’s
balance sheet representing the two New York solar projects which
are now Solar Alliance owned assets. The amount represents the
construction-in-progress at Q2, 2022 and will increase as
construction is completed in Q3, 2022.
Business highlights
- Solar Alliance continued to successfully execute on its
strategy 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.
- 500-kilowatt, US$750,000 solar project – On
May 9, 2022 the Company announced it has signed a contract to
design and build a 500-kilowatt solar project for a commercial
customer in Kentucky. The project, with a capital cost of
US$750,000, will be powered by more than 1,000 Cat® solar modules
and is expected to be completed by the end of 2022.
- Construction continued on several of Solar Alliance’s large
projects, including the 500-kW project for Louisville Gas and
Electric and Kentucky Utilities which commenced construction on
March 14, 2022.
- Construction commenced on company-owned solar projects
in New York. The two projects, which represent a combined
687-kW, are now under construction and are expected to being
operating later this year. Once operational, the projects will
provide recurring revenue under 30-year power purchase agreements
with local municipalities. The two projects represent
proof-of-concept for the Company’s asset ownership strategy and
will form the basis for a growing portfolio of assets under
ownership.
- Subsequent to Q2, on August 16, 2022 U.S. President
Biden signed the Inflation Reduction Act (“IRA”), 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 for the remainder of
2022:
- Development pipeline
expansion. Solar Alliance is assessing opportunities to
partner and/or acquire a larger pipeline of development-stage
projects the Company may ultimately own and operate. The first two
project acquisitions in New York State form a solid foundation for
a more aggressive development and acquisition strategy.
- Construction of
backlog. Despite global supply chain issues, the Company
has secured the required materials for the contracted projects and
anticipates converting all of the $4,300,000 in contracted backlog
into revenue in 2022.
- Large solar system sales
building backlog. The Company continues to target larger
customers for third-party solar system sales and installation,
similar to the 2.4 MW Bridgestone project and the 1 MW Knoxville
utility project.
“Our key focus remains on executing our business
plan and staying on track for what we see ahead as a record year in
commercial solar growth. With the continued growth in the U.S.
solar market and our growing market share in the U.S. Southeast,
Solar Alliance remains a unique opportunity in the ESG investing
space,” he added.
Myke Clark, CEO
For more information: |
Investor RelationsMyke Clark,
CEO416-848-7744mclark@solaralliance.com |
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 Tennessee, Kentucky, North/South Carolina and
Illinois and has an expanding pipeline of solar projects. Since it
was founded in 2003, the Company has developed $1 billion of
renewable energy 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.
“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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