TORONTO and Knoxville, Tennessee, Aug. 26, 2022 (GLOBE NEWSWIRE) — Solar Alliance Energy Inc. (“Solar Alliance” or the “Company”) (TSX-V: SOLR, OTCQB: SAENF) announces that it has filed its unaudited financial results for the three and six months ended June 30, 2022. The Company’s financial statements and related MD&A are available under the Company’s profile at www.sedar.com.
“Solar Alliance remains on track for a banner year in commercial solar,” said CEO Myke Clark. “The combination of revenue to date, the backlog of projects that will be built before the end of the year, and significant work in progress support a record year for Solar Alliance as we focus on larger commercial solar projects. and utilities.”
“In addition to this growing backlog and revenue stream, we have begun construction on our two corporate-owned solar projects in New York. These projects will generate long-term recurring revenue once they are completed. completed by the end of September,” Clark continued. “Our strong results are further supported by recently passed climate legislation in the United States, which is expected to drive the long-term growth of the solar industry and contains several provisions that will directly benefit Solar Alliance and our customers.”
- The backlog of projects under contract exceeds $4,300,000. Projects in this backlog are expected to be built and recognized in 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 to build the large backlog of contracted projects.
- Expenses of $897,775 remained relatively stable (Q2 2021 – $848,962) even as the Company increased its backlog and construction activities.
- Net loss for the quarter of $208,254 (Q2, 2021 – $628,424).
- Accounts receivable of $673,724 and work in progress of $538,028 illustrate the increased construction rate the company is currently experiencing as it builds the $4,300,000 backlog of contracted projects.
- Addition of $353,174 to the balance sheet of the company representing the two New York solar projects which are now assets held by Solar Alliance. The amount represents construction in progress in Q2 2022 and will increase as construction is completed in Q3 2022.
- Solar Alliance continued to successfully execute its strategy to build, own and operate our own solar assets while generating stable revenues through the sale and installation of solar projects to commercial and utility customers.
- 500 kilowatt solar project, US$750,000 – On May 9, 2022, the company announced that it had 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 $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 major projects, including the 500 kW project for Louisville Gas and Electric and Kentucky Utilities, which began construction on March 14, 2022.
- Construction has begun on company-owned solar projects in New York. The two projects, which represent a combined output of 687 kW, are currently under construction and should be operational later this year. Once operational, the projects will provide recurring revenue under 30-year power purchase agreements with local municipalities. Both projects represent proof of concept for the Company’s asset ownership strategy and will form the basis of a growing portfolio of owned assets.
- After Q2, August 16, 2022 US 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 enables significant savings on solar systems through increased tax credits of up to 60% of a project’s capital costs. As a company 100% focused on the US solar industry, Solar Alliance is well positioned for continued growth in the IRA-supported commercial and utility solar sector.
Here are the main objectives for the rest of 2022:
- Extension of the development pipeline. Solar Alliance is evaluating opportunities to partner and/or acquire more development-stage projects that the Company may eventually own and operate. The first two project acquisitions in New York State provide a solid foundation for a more aggressive development and acquisition strategy.
- Construction of the backlog. Despite global supply chain issues, the company has secured materials required for contracted projects and expects to convert the full $4,300,000 contract backlog into revenue in 2022.
- Significant backlog of sales of solar systems. The Company continues to target larger customers for the sale and installation of third-party solar systems, such as the 2.4 MW Bridgestone project and the 1 MW Knoxville utility project.
“Our primary focus remains on executing our business plan and staying on track for what we see as a record year of commercial solar growth. With the continued growth of the US solar market and our increasing market share in the Southeastern US, Solar Alliance remains a unique opportunity in the ESG investment space,” he added.
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 Tennessee, Kentucky, North/South Carolina and Illinois and has an expanding pipeline of solar projects. Since its inception in 2003, the company has developed $1 billion in renewable energy projects that provide enough electricity to power 150,000 homes. Our passion is to improve lives through ingenuity, simplicity and freedom of choice. Solar Alliance reduces or eliminates customer vulnerability to rising energy costs, offers an environmentally friendly source of power generation, and provides affordable turnkey clean energy solutions.
The statements contained in this press 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 expressions are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause the Company’s actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking information. These factors include, but are not limited to: uncertainties relating to the ability to raise sufficient capital, changes in economic or financial market conditions, litigation, legislative or other competitive, judicial, regulatory and political developments and technological or operational difficulties. Therefore, actual results may differ materially from those described in the forward-looking statements.
“Neither the 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.”