SolarBank BESS Subsidiary Secures Project Financing
SolarBank (NASDAQ: SUUN) announces its subsidiary has secured a $3 million loan from RE Royalties for three 4.99 MW Battery Energy Storage System (BESS) projects in Ontario. The loan matures on November 26, 2025, with an 11% annual interest rate and includes a 0.40% royalty on gross revenues (reducible to 0.25% if repaid within six months). The projects, part of SolarBank's initial entry into battery storage, were acquired through the $45 million Solar Flow-Through Funds acquisition in July 2024. The borrower holds a 50% indirect interest in the projects, with the remaining stake held by First Nations communities in Ontario.
SolarBank (NASDAQ: SUUN) annuncia che la sua filiale ha ottenuto un prestito di 3 milioni di dollari da RE Royalties per tre progetti di Sistema di Stoccaggio Energetico a Batteria (BESS) da 4,99 MW in Ontario. Il prestito scade il 26 novembre 2025, con un tasso d'interesse annuo dell'11% e include una royalty dello 0,40% sulle entrate lorde (riducibile allo 0,25% se restituito entro sei mesi). I progetti, parte del primo ingresso di SolarBank nello stoccaggio di energia a batteria, sono stati acquisiti attraverso l'acquisizione di Solar Flow-Through Funds da 45 milioni di dollari nel luglio 2024. Il mutuatario detiene un interesse indiretto del 50% nei progetti, con la restante quota detenuta dalle comunità delle Prime Nazioni in Ontario.
SolarBank (NASDAQ: SUUN) anuncia que su subsidiaria ha asegurado un préstamo de 3 millones de dólares de RE Royalties para tres proyectos de Sistema de Almacenamiento de Energía de Batería (BESS) de 4,99 MW en Ontario. El préstamo vence el 26 de noviembre de 2025, con una tasa de interés anual del 11% e incluye una regalía del 0,40% sobre los ingresos brutos (reducible al 0,25% si se paga dentro de seis meses). Los proyectos, parte de la entrada inicial de SolarBank en almacenamiento de baterías, fueron adquiridos a través de la adquisición de Solar Flow-Through Funds por 45 millones de dólares en julio de 2024. El prestatario posee un interés indirecto del 50% en los proyectos, con la participación restante en manos de las comunidades de Primeras Naciones en Ontario.
SolarBank (NASDAQ: SUUN)은 자회사가 온타리오에서 4.99 MW 배터리 에너지 저장 시스템(BESS) 프로젝트 3개를 위해 RE Royalties로부터 300만 달러의 대출을 확보했다고 발표했습니다. 대출은 2025년 11월 26일 만료되며, 연이율 11%의 이자를 포함하고 있으며, 총 수익의 0.40%의 로열티가 포함되어 있습니다(6개월 이내 상환 시 0.25%로 감소 가능). 이 프로젝트는 SolarBank의 배터리 저장소에 첫 진입한 것으로, 2024년 7월 4,500만 달러의 Solar Flow-Through Funds 인수를 통해 취득되었습니다. 차입자는 해당 프로젝트에 대한 간접적 지분 50%를 보유하고 있으며, 나머지 지분은 온타리오의 원주율 공동체가 보유하고 있습니다.
SolarBank (NASDAQ: SUUN) annonce que sa filiale a obtenu un prêt de 3 millions de dollars de RE Royalties pour trois projets de système de stockage d'énergie par batterie (BESS) de 4,99 MW en Ontario. Le prêt arrive à échéance le 26 novembre 2025, avec un taux d'intérêt annuel de 11% et comprend une redevance de 0,40% sur les revenus bruts (réductible à 0,25% s'il est remboursé dans les six mois). Les projets, faisant partie de la première entrée de SolarBank dans le stockage de batteries, ont été acquis par le biais de l'acquisition des Solar Flow-Through Funds pour 45 millions de dollars en juillet 2024. L'emprunteur détient un intérêt indirect de 50% dans les projets, le reste étant détenu par les communautés des Premières Nations en Ontario.
SolarBank (NASDAQ: SUUN) gibt bekannt, dass ihre Tochtergesellschaft einen Darlehen über 3 Millionen Dollar von RE Royalties für drei Projekte eines Batterie-Energiespeichersystems (BESS) mit je 4,99 MW in Ontario gesichert hat. Das Darlehen läuft am 26. November 2025 aus, hat einen jährlichen Zinssatz von 11% und umfasst eine Tantieme von 0,40% auf den Bruttoeinnahmen (reduzierbar auf 0,25%, wenn innerhalb von sechs Monaten zurückgezahlt). Die Projekte, die Teil des ersten Einstiegs von SolarBank in die Batteriespeicherung sind, wurden im Juli 2024 durch den Erwerb der Solar Flow-Through Funds in Höhe von 45 Millionen Dollar erworben. Der Kreditnehmer hält einen indirekten Anteil von 50% an den Projekten, während der verbleibende Anteil von den First Nations Gemeinschaften in Ontario gehalten wird.
- Secured $3 million in project financing for BESS development
- Entry into battery storage market with projected 16.3% CAGR through 2029
- Strategic partnership with First Nations communities holding 50% stake
- High interest rate of 11% per annum on the loan
- Additional 0.40% royalty payment on gross revenues required
- Project development subject to permit risks and third-party financing availability
Insights
The
The BESS market's projected
The three 4.99 MW BESS projects represent a calculated market entry strategy. The sub-5MW size per project likely optimizes regulatory requirements while maintaining economic viability. Ontario's grid infrastructure needs and renewable energy integration goals make this market particularly attractive for BESS deployment. These projects, acquired through the
The First Nations partnership structure enhances project viability through local community benefits and potential preferential grid access. However, success depends on efficient project execution and securing favorable revenue contracts in Ontario's energy market.
This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated May 23, 2024 to its short form base shelf prospectus dated May 2, 2023
The Company is developing three 4.99 MW Battery Energy Storage System ("BESS") projects located in
Matthew Wayrynen, Chair of SolarBank stated: "We are thrilled to continue our partnership with RE Royalties to secure this financing for our BESS projects in
Bernard Tan, CEO of RE Royalties, stated: "We are excited to be working with the SolarBank management team again on this transaction. The SolarBank team has a long proven track record in developing, building and operating renewable energy assets in
The Loan will be advanced in a single installment and has a maturity date of November 26, 2025. The Loan bears interest at a rate of
There are several risks associated with the development of the Projects. The development of any project is subject to required permits, the continued availability of third-party financing arrangements for the Company and the risks associated with the construction of a battery energy storage project. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for battery energy storage, which could result in future projects no longer being economic. Please refer to "Forward-Looking Statements" for additional discussion of the assumptions and risk factors associated with the projects and statements made 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
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 terms of the Loan; the use of proceeds from the Loan; the Company's advancement of a project finance package for the Projects; the Company's growth strategies the expected energy production from the Projects mentioned in this press release; the timeline for construction of the Projects; the receipt of permits and financing to be able to construct the Projects; and the size of the Company's development pipeline. 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 financing for the full construction costs of the Projects; 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, including receipt of project financing for the full construction costs of the Projects; 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
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