Pineapple Energy Subsidiary SUNation Completes Foundational Engineering Work on 8.46 MW Commercial Installations Valued at $11 Million

Rhea-AI Summary

SUNation, a subsidiary of Pineapple Energy (Nasdaq: PEGY), has completed foundational engineering work for an 8.46 MW commercial solar project series on Long Island valued at $11 million. The work was performed under an exclusive Letter of Intent for the engineering portion. SUNation is currently finalizing contract details for the installation of photovoltaic modules and racking systems across various sites. The non-binding project is expected to begin construction in 2025, subject to normal closing conditions. The company notes a trend toward bundled site packages rather than individual structure projects.

Positive

• Secured engineering work for large-scale 8.46 MW commercial project worth $11 million
• Potential for additional revenue through installation contracts if agreement is finalized

Negative

• Project agreements are non-binding and subject to closing conditions
• Construction not expected to begin until 2025

Insights

Financial Analyst

The completion of foundational engineering work for $11 million worth of commercial solar installations marks a significant milestone for PEGY, representing substantial potential revenue. The 8.46 MW project scope demonstrates SUNation's capability to handle large-scale commercial installations, though investors should note the non-binding nature of the agreement. While the engineering phase is complete, final contracts for installation are still pending, adding uncertainty to the revenue timeline.

The project's structure as a multi-site package aligns with industry trends and could indicate a scalable business model. However, with construction not expected until 2025 and subject to closing conditions, the immediate financial impact is The company's commercial solar focus appears promising, but current market cap of $1.29 million suggests investors are cautious about execution risks.

Solar Energy Expert

An 8.46 MW commercial solar portfolio is a substantial undertaking that demonstrates SUNation's technical capabilities in the commercial sector. The bundled approach to multiple sites reflects an evolving market trend that can improve project economics through economies of scale. The completion of engineering work typically represents 5-10% of total project value, suggesting initial revenue recognition while setting the stage for larger installation contracts.

The project's size and complexity highlight SUNation's competitive position in the New York market, particularly on Long Island. However, the extended timeline to 2025 construction reflects typical commercial solar development cycles and regulatory complexities in the region. The trend toward bundled site packages could lead to more efficient project execution and improved margins.

RONKONKOMA, N.Y., Oct. 24, 2024 (GLOBE NEWSWIRE) -- SUNation, the New York-based subsidiary of Pineapple Energy Inc. (Nasdaq: PEGY) (Pineapple Energy) (“Pineapple” or the “Company”), a leading provider of sustainable solar energy and backup power to households, businesses, municipalities, and for servicing existing systems, has completed the foundational engineering work for an 8.46 MW series of commercial projects on Long Island collectively valued at $11 million.

The work was performed as part of an exclusive Letter of Intent on the engineering portion of the project. SUNation is working with the project principals to finalize details for contracts that would have the Company perform installation of photovoltaic modules and racking systems across their various sites. Any future work agreed upon via letters of intent between the two parties is non-binding and subject to normal closing conditions.

As is typical with commercial contracts in the solar space, the client wishes to remain anonymous. While the next scope-of-work is being fine-tuned, if things proceed, the company expects construction to begin in 2025.

“The commercial side of the business is the solar success story of 2024,” Scott Maskin, Pineapple Energy’s interim CEO noted. “But these projects are quite complex. Still, we continue to see how benefits for both business owners who go solar and the expansion of green energy options to the broader community make these efforts well-worth it.”

“The engineering work behind projects like these often evolve over time to reflect subtle shifts in approach,” John Mucci, SUNation’s General Manager of New York Operations, noted. “We’re seeing more and more projects come in as distinct ‘packages’ of sites for us to work on, instead of simply targeting one individual structure. Based on the trends, we expect this type of bundling to continue well into next year.”

About Pineapple Energy
Pineapple is focused on growing leading local and regional solar, storage, and energy services companies nationwide. Our vision is to power the energy transition through grass-roots growth of solar electricity paired with battery storage. Our portfolio of brands (SUNation, Hawaii Energy Connection, E-Gear) provide homeowners and businesses of all sizes with an end-to-end product offering spanning solar, battery storage, and grid services.

Forward Looking Statements
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company’s current expectations or beliefs and are subject to uncertainty and changes in circumstances, including the Company’s expectations regarding its ability to effect the reverse stock split and regain compliance with Nasdaq’s continued listing standards. While the Company believes its plans, intentions, and expectations reflected in those forward-looking statements are reasonable, these plans, intentions, or expectations may not be achieved. For information about the factors that could cause such differences, please refer to the Company’s filings with the Securities and Exchange Commission, including, without limitation, the statements made under the heading “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and in subsequent filings. The Company does not undertake any obligation to update or revise these forward-looking statements for any reason, except as required by law.

Safe Harbor Statement
Our prospects here at Pineapple Energy Inc. are subject to uncertainties and risks. This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. The Company intends that such forward-looking statements be subject to the safe harbor provided by the foregoing Sections. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this presentation. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. We caution readers not to place undue reliance upon any such forward-looking statements. The Company does not undertake to publicly update or revise forward-looking statements, whether because of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in the Company's filings with the SEC which can be found on the SEC's website at www.sec.gov.

Contacts:
Scott Maskin
Interim Chief Executive Officer
+1 (631) 823-7131
scott.maskin@pineappleenergy.com

Pineapple Investor Relations
+1 (952) 996-1674
IR@pineappleenergy.com

FAQ

What is the value of SUNation's new solar project for Pineapple Energy (PEGY)?

The series of commercial solar installations is valued at $11 million, comprising 8.46 MW of capacity across various sites on Long Island.

When will construction begin on Pineapple Energy's (PEGY) 8.46 MW solar project?

Construction is expected to begin in 2025, pending final contract agreements and closing conditions.

What type of work has SUNation completed for Pineapple Energy's (PEGY) $11 million project?

SUNation has completed the foundational engineering work and is finalizing contracts for the installation of photovoltaic modules and racking systems.