7.00 MW Solar Project Under Development by SolarBank in Middletown, New York

Rhea-AI Summary

SolarBank (NASDAQ: SUUN) has announced plans to develop a 7 MW DC ground-mount solar power project called the Hwy 28 project on a 45-acre site in Middletown, Delaware County, New York. This follows the announcement of a 5.4 MW project in Broome County, New York. The Hwy 28 project is expected to:

• Operate as a community solar site, selling credits to subscribers
• Provide green energy to over 800 homes once operational
• Be eligible for incentives under the NYSERDA NY-Sun Program

SolarBank has secured a lease for the site and received interconnection approval. The company will now focus on completing the permitting process and securing financing for construction. This project contributes to SolarBank's growing community solar portfolio and development pipeline, which now exceeds one gigawatt.

Positive

• Secured lease and interconnection approval for 7 MW solar project
• Project eligible for NYSERDA NY-Sun Program incentives
• Expected to provide green energy to over 800 homes
• Contributes to development pipeline exceeding one gigawatt
• Aligns with company's strategic focus on community solar

Negative

• Project development subject to permitting and financing risks
• Potential changes in government incentives may impact project economics

Insights

Financial Analyst

This announcement of a 7 MW solar project in Middletown, New York, represents a modest expansion of SolarBank's community solar portfolio. While positive, the immediate financial impact is likely given SolarBank's $142 million market cap and existing 1+ GW development pipeline.

Key points to consider:

• The project is still in early stages, requiring permitting and financing before construction.
• Eligibility for NYSERDA NY-Sun incentives could improve project economics.
• Community solar model provides recurring revenue potential once operational.
• Serves ~800 homes, expanding SolarBank's customer base.

While incrementally positive, investors should focus on SolarBank's ability to execute its broader pipeline and achieve profitability. The company's success in securing financing and navigating regulatory processes for multiple projects will be important indicators of long-term value creation.

Renewable Energy Expert

This 7 MW project, along with the recently announced 5.4 MW project, showcases SolarBank's growing momentum in the New York community solar market. The company's strategy aligns well with state-level incentives and the increasing demand for accessible clean energy solutions.

Notable aspects:

• 45-acre site suggests efficient land use for the project size.
• Interconnection approval is a significant milestone, reducing development risk.
• Community solar model addresses barriers to rooftop solar adoption.
• Contributes to New York's ambitious clean energy goals.

However, investors should be aware of potential challenges, including permitting delays, financing constraints and policy risks. SolarBank's ability to navigate these hurdles across its growing portfolio will be critical for long-term success in the competitive renewable energy sector.

• Second new community solar project announced this week in addition to 5.4 MW project announced yesterday.
• Expected to operate as a community solar site, selling credits to subscribers.
• Over 800 homes expected to be provided green energy once operational.
• Eligible to participate in the NYSUN program to receive NYSERDA incentives.

TORONTO, Sept. 24, 2024 /PRNewswire/ - SolarBank Corporation (NASDAQ: SUUN) (Cboe CA: SUNN) (FSE: GY2) ("SolarBank" or the "Company") announces that it intends to develop a 7 MW DC ground-mount solar power project known as the Hwy 28 project (the "Project") on a 45 acre site located in Middletown, Delaware County, New York. This follows yesterday's press release regarding a 5.4 MW DC ground-mount solar power project known as the Boyle project on a site located in Broome County, New York that the Company is developing. The Project is expected to be eligible for incentives under the New York State Energy Research and Development Authority ("NYSERDA") NY-Sun Program.

The Company has secured a lease over the Project site and received interconnection approval. It will now work to complete the permitting process and secure the necessary financing for construction. The Hwy 28 Project is another addition to SolarBank's growing community solar portfolio, and contributes to the Company's extensive development pipeline, which now exceeds one gigawatt.

Once completed, the Project will be operated as a community solar project. The clean energy generated by a community solar project feeds directly into the local electricity grid. Depending on the size and number of panels the project has, dozens or even hundreds of renters and homeowners can earn credits on their electric bill and save money from the electricity that is generated by the project. By subscribing to a project, community members can access the benefits of renewable energy without having to install panels on their home. SolarBank's strategic focus on community solar aligns with its goal of powering thousands of homes with clean and affordable energy.

There are several risks associated with the development of the Project. The development of any project is subject to receipt of required permits, the continued availability of third-party financing arrangements for the Company and the risks associated with the construction of a solar power project. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for solar power, which could result in future projects no longer being economical. Please refer to "Forward-Looking Statements" for additional discussion of the assumptions and risk factors associated with the statements in this press release.

About SolarBank Corporation

SolarBank Corporation is an independent renewable and clean energy project developer and owner focusing on distributed and community solar projects in Canada and the USA. The Company develops solar projects that sell electricity to utilities, commercial, industrial, municipal and residential off-takers. The Company maximizes returns via a diverse portfolio of projects across multiple leading solar markets including projects with utilities, host off-takers, community solar, and virtual net metering projects. The Company has a potential development pipeline of over one gigawatt and has developed renewable and clean energy projects with a combined capacity of over 70 megawatts built. To learn more about SolarBank, please visit www.solarbankcorp.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements and forward-looking information ‎within the meaning of Canadian securities legislation (collectively, "forward-looking ‎statements") that relate to the Company's current expectations and views of future events. ‎Any statements that express, or involve discussions as to, expectations, beliefs, plans, ‎objectives, assumptions or future events or performance (often, but not always, through the ‎use of words or phrases such as "will likely result", "are expected to", "expects", "will ‎continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", ‎‎"projection", "strategy", "objective" and "outlook") are not historical facts and may be ‎forward-looking statements and may involve estimates, assumptions and uncertainties ‎which could cause actual results or outcomes to differ materially from those expressed in ‎such forward-looking statements. In particular and without limitation, this news release ‎contains forward-looking statements pertaining to the Company's expectations regarding its industry trends and overall market growth; the Company's growth strategies the expected energy production from the solar power project mentioned in this press release; the number of homes expected to be powered; the reduction of carbon emissions; the receipt permits and financing to be able to construct the Project; and the receipt of incentives for the Project. No assurance ‎can be given that these expectations will prove to be correct and such forward-looking ‎statements included in this news release should not be unduly relied upon. These ‎statements speak only as of the date of this news release.‎

Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. In making the forward looking statements included in this news release, the Company has made various material assumptions, including but not limited to: obtaining the necessary regulatory approvals; that regulatory requirements will be maintained; general business and economic conditions; the Company's ability to successfully execute its plans and intentions; the availability of financing on reasonable terms; the Company's ability to attract and retain skilled staff; market competition; the products and services offered by the Company's competitors; that the Company's current good relationships with its service providers and other third parties will be maintained; and government subsidies and funding for renewable energy will continue as currently contemplated. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and the Company cannot assure that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties and assumptions, investors should not place undue reliance on these forward-looking statements.

Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those listed under "Forward-‎Looking Statements" and "Risk ‎Factors" in the Company's most recently completed Annual Information Form, and other public filings of the Company, which include: the Company may be adversely affected by volatile solar power market and industry conditions; the execution of the Company's growth strategy depends upon the continued availability of third-party financing arrangements; the Company's future success depends partly on its ability to expand the pipeline of its energy business in several key markets; governments may revise, reduce or eliminate incentives and policy support schemes for solar and battery storage power; general global economic conditions may have an adverse impact on our operating performance and results of operations; the Company's project development and construction activities may not be successful; developing and operating solar projects exposes the Company to various risks; the Company faces a number of risks involving Power Purchase Agreements ("PPAs") and project-level financing arrangements; any changes to the laws, regulations and policies that the Company is subject to may present technical, regulatory and economic barriers to the purchase and use of solar power; the markets in which the Company competes are highly competitive and evolving quickly; an anti-circumvention investigation could adversely affect the Company by potentially raising the prices of key supplies for the construction of solar power projects; foreign exchange rate fluctuations; a change in the Company's effective tax rate can have a significant adverse impact on its business; seasonal variations in demand linked to construction cycles and weather conditions may influence the Company's results of operations; the Company may be unable to generate sufficient cash flows or have access to external financing; the Company may incur substantial additional indebtedness in the future; the Company is subject to risks from supply chain issues; risks related to inflation; unexpected warranty expenses that may not be adequately covered by the Company's insurance policies; if the Company is unable to attract and retain key personnel, it may not be able to compete effectively in the renewable energy market; there are a limited number of purchasers of utility-scale quantities of electricity; compliance with environmental laws and regulations can be expensive; corporate responsibility may adversely impose additional costs; the future impact of any resurgence of COVID-19 on the Company is unknown at this time; the Company has limited insurance coverage; the Company will be reliant on information technology systems and may be subject to damaging cyberattacks; the Company may become subject to litigation; there is no guarantee on how the Company will use its available funds; the Company will continue to sell securities for cash to fund operations, capital expansion, mergers and acquisitions that will dilute the current shareholders; and future dilution as a result of financings.

The Company undertakes no obligation to update or revise any ‎forward-looking statements, whether as a result of new information, future events or ‎otherwise, except as may be required by law. New factors emerge from time to time, and it ‎is not possible for the Company to predict all of them, or assess the impact of each such ‎factor or the extent to which any factor, or combination of factors, may cause results to ‎differ materially from those contained in any forward-looking statement. Any forward-‎looking statements contained in this news release are expressly qualified in their entirety by ‎this cautionary statement.‎

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SOURCE SolarBank Corporation

FAQ

What is the capacity of SolarBank's new Hwy 28 solar project in Middletown, New York?

SolarBank (SUUNF) is developing a 7 MW DC ground-mount solar power project called the Hwy 28 project in Middletown, Delaware County, New York.

How many homes is the Hwy 28 project expected to provide green energy to?

Once operational, the Hwy 28 project is expected to provide green energy to over 800 homes through its community solar model.

Is SolarBank's Hwy 28 project eligible for any incentives?

Yes, the Hwy 28 project is expected to be eligible for incentives under the New York State Energy Research and Development Authority (NYSERDA) NY-Sun Program.

What is the current status of SolarBank's Hwy 28 project development?

SolarBank (SUUNF) has secured a lease for the 45-acre site and received interconnection approval. The company is now working to complete the permitting process and secure financing for construction.