SolarMax Technology Signs MOU for Cryptocurrency Solar Projects in the U.S.

Rhea-AI Summary

SolarMax Technology (Nasdaq: SMXT) announced a Memorandum of Understanding (MOU) with SOS (NYSE: SOS) to develop large-scale solar power and battery storage facilities in Nevada, Texas, and Florida.

The MOU outlines the creation of six facilities, each with a capacity of approximately 50 megawatts, totaling about 300 megawatts. SolarMax will provide end-to-end engineering, procurement, and construction (EPC) services, including obtaining permits and facilitating utility connections.

While the MOU does not specify terms and is subject to negotiation, SOS will finance the EPC efforts and ensure compliance with local utility regulations. SolarMax CEO David Hsu emphasized the alignment of solar energy with blockchain technology, aiming to set new standards for sustainable energy consumption in the digital economy.

This collaboration aligns with SolarMax's strategic growth initiatives, focusing on expanding its presence in the U.S. commercial solar market and showcasing the transformative role of renewable energy in sustainable economic growth.

Positive

• MOU to develop 300 megawatts of solar power facilities.
• SolarMax to provide end-to-end EPC services.
• SOS to finance EPC efforts and ensure regulatory compliance.
• Strategic alignment with SolarMax's growth initiatives in the U.S. commercial solar market.

Negative

• MOU terms are unspecified and subject to negotiation.

Insights

Energy Infrastructure Analyst

The proposed 300MW solar project portfolio represents a significant opportunity in the commercial solar sector, particularly for a company of SolarMax's size. Each 50MW facility would require approximately $50-75 million in development costs, potentially generating substantial EPC revenue for SMXT. However, several critical risks need consideration: 1) The MOU lacks binding terms and pricing agreements, making revenue projections speculative, 2) Cryptocurrency mining's volatility could impact project viability, 3) Grid connection and permitting in three different states present complex regulatory challenges. The project's scale would significantly expand SMXT's portfolio, but execution risks and the partner's industry exposure warrant careful evaluation.

Renewable Energy Market Analyst

This strategic move positions SMXT in the growing intersection of renewable energy and digital infrastructure. The 300MW total capacity would supply enough power for roughly 60,000 homes equivalent, though cryptocurrency mining operations typically consume significantly more energy. The multi-state approach helps diversify geographic risks, with Nevada, Texas and Florida offering different solar irradiance profiles and regulatory environments. However, cryptocurrency mining's energy-intensive nature and market volatility raise sustainability concerns. The project's success heavily depends on cryptocurrency market conditions and SOS's financial stability. While the concept shows promise, the non-binding nature of the MOU and undefined commercial terms make it premature to assess the financial impact.

RIVERSIDE, Calif., Dec. 10, 2024 (GLOBE NEWSWIRE) -- SolarMax Technology, Inc. (Nasdaq SMXT) (“SolarMax” or the “Company”), an integrated solar energy company, has entered into a Memorandum of Understanding (MOU) with SOS Limited (NYSE: SOS), whose business activities include cryptocurrency mining, to develop large-scale solar power and battery storage facilities in Nevada, Texas and Florida to provide power for SOS’ blockchain and cryptocurrency operations.

The MOU contemplates the development of six separate facilities, each with a capacity of approximately 50 megawatts, for a combined total of approximately 300 megawatts. Under the proposed agreements, SolarMax would provide end-to-end engineering, procurement, and construction (EPC) services for these installations, including obtaining necessary permits and facilitating utility connections. The MOU does not provide any terms for the agreements between SolarMax and SOS, all of which are subject to negotiation.

David Hsu, CEO of SolarMax, stated, “This MOU with SOS sets the stage for an alignment between solar energy and blockchain technology. Together, we aim to redefine the standards for sustainable energy consumption in the digital economy, showcasing the potential of solar power to drive high-energy industries. SolarMax has a proven ability to implement complex solar projects, which, combined with its forward-thinking approach, strengthen its ability to deliver high-value solutions for its clients.”

The MOU provides that SOS will finance the EPC efforts and retain responsibility for compliance with local utility regulations.

The collaboration aligns with SolarMax’ strategic growth initiatives, which focus on expanding its presence in the U.S. commercial solar market. Projects like this proposed project highlight the potential transformative role renewable energy plays in achieving sustainable economic growth.

About SolarMax Technology Inc.

SolarMax, based in California and founded in 2008, is a leader within the solar and renewable energy sector focused on making sustainable energy both accessible and affordable. SolarMax has established a strong presence in southern California. SolarMax is looking to generate growth with strategic initiatives that aim to scale commercial solar development services and LED lighting solutions in the US while expanding its residential solar operations. SolarMax’ website is www.solarmaxtech.com.

About SOS Limited

SOS is an emerging blockchain-based service solution provider and is also engaged in blockchain and cryptocurrency operations, which currently include cryptocurrency mining and may expand into cryptocurrency security. Since April 2021, SOS has launched commodity trading via its subsidiary SOS International Trading Co. Ltd. Major trading commodities include mineral resin, soy bean, wheat, sesame, liquid sulfur, petrol coke, and latex etc. SOS’ website is http://www.sosyun.com.

Any information contained on, or that can be accessed through SolarMax’ website, SOS’ website, or any other website or any social media is not a part of this press release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements are subject to risk and uncertainties, including, but not limited to the ability of SolarMax to enter into definitive agreements with SOS and to price its services at rates that will enable SolarMax to generate a profit from the agreements and those described in “Cautionary Note on Forward-Looking Statements,” “Item 1A. Risk Factors,” and “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on April 16, 2024 and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s report on Form 10-Q for the quarter ended September 30, 2024, which was filed with the SEC on November 14, 2024. SolarMax undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

Contact:
For more information, contact:
Stephen Brown, CFO
(951) 300-0711

FAQ

What is SolarMax Technology's recent MOU about?

SolarMax Technology signed an MOU with SOS to develop large-scale solar power and battery storage facilities in Nevada, Texas, and Florida.

How many megawatts will the new facilities generate?

The new facilities will have a combined capacity of approximately 300 megawatts.

What services will SolarMax provide under the MOU?

SolarMax will provide end-to-end engineering, procurement, and construction (EPC) services.

Who will finance the EPC efforts for the new solar facilities?

SOS will finance the EPC efforts and ensure compliance with local utility regulations.

What strategic initiatives does this MOU align with for SolarMax Technology?

The MOU aligns with SolarMax's strategic growth initiatives to expand its presence in the U.S. commercial solar market.