3.25 MW Solar Project in Camillus, NY Under Development by SolarBank Secures Permit
SolarBank (NASDAQ: SUUN) has announced an update on its 3.25 MW DC ground-mount solar power project in Camillus, New York. The project, located on a closed landfill, has received plan approval and a special use permit from the town. It is expected to be eligible for incentives under the NYSERDA NY-Sun Program. The final step in development is securing financing, with construction anticipated to begin in Q3 2024.
This project is part of SolarBank's growing independent power producer assets portfolio, which currently has a combined capacity of 50.76 MW (32 MW operating and 18.76 MW under construction). Once operational, it will function as a community solar site, providing green energy to approximately 360 homes through a subscription model. Subscribers will earn credits on their electric bills from the solar energy generated by the project.
- Received plan approval and special use permit for 3.25 MW solar project in Camillus, NY
- Project eligible for NYSERDA NY-Sun Program incentives
- Expanding independent power producer portfolio to 50.76 MW combined capacity
- Expected to provide green energy to 360 homes as a community solar site
- Final financing for project construction not yet secured
- Project development subject to third-party financing risks
- Potential risks associated with solar power project construction
- Possibility of government revisions or reductions in solar power incentives
Insights
SolarBank Corporation's recent successful permit acquisition for their 3.25 MW solar project in Camillus, NY, marks a significant milestone in their growth strategy. This project will be a valuable addition to their portfolio, which currently includes 50.76 MW combined capacity. The expansion reinforces the company’s commitment to renewable energy as it transitions to become a robust independent power producer.
One notable aspect is the project's eligibility for the NY-Sun Program incentives. These incentives can substantially reduce the initial capital expenditure, enhancing project feasibility and financial attractiveness. The goal to serve 360 homes with green energy illuminates a clear path towards community engagement and sustainability. From a financial perspective, the anticipated subscription model for community solar projects can provide a steady revenue stream, mitigating risks associated with market fluctuations.
However, there are inherent risks, such as securing the necessary financing and potential changes in government incentives. Investors should monitor these closely. The project's ability to reach the notice to proceed stage by Q3 2024 will be a pivotal marker for its progress.
In summary, while the permit approval is a promising development, the financial success of the project will hinge on effective risk management and securing additional funding.
The development of the 3.25 MW solar project by SolarBank Corporation in Camillus, NY, represents a strategic move towards enhancing their market footprint in the renewable energy sector. Community solar projects like this one are gaining traction due to their ability to democratize access to solar energy. By allowing homeowners and renters to subscribe without the need for personal installations, SolarBank taps into a broader customer base, which can drive higher subscription rates and consumer adoption.
The project's alignment with the NYSUN program also positions it well within the green energy policy landscape of New York. This program aims to make solar more affordable and easier for New Yorkers, which could translate to high community interest and participation. Additionally, locating the solar project on a closed landfill is an innovative reuse of space that aligns with environmental sustainability goals.
Nevertheless, the market is highly dynamic, with policy shifts and competitive landscape changes posing potential risks. For retail investors, understanding these market dynamics and the company's strategic positioning will be important in evaluating long-term value creation.
Overall, the project holds promise for market growth and environmental impact, though ongoing vigilance towards market trends and policy changes is necessary.
- Project is intended to be part of SolarBank's growing independent power producer assets portfolio – which is presently 50.76 MW combined capacity of (32 MW operating and 18.76 MW under construction)
- Expected to operate as a community solar site, selling credits to subscribers.
- 360 homes expected to be provided green energy once operational
- Eligible to participate in the NYSUN program to receive NYSERDA incentives.
With the receipt of the special use permit, the Company's final step in the development process is to secure the necessary financing for the construction of the Project. The Project is expected to reach notice to proceed stage in Q3, 2024. SolarBank is developing this Project as part of its independent power producer portfolio of assets.
Once completed, the Project will be operated as a community solar project. Community solar is a group of solar panels with access to the local electricity grid. Once the panels are turned on and generating electricity, clean energy from the site feeds into the local power grid. Depending on the size and number of panels the project has, dozens or even hundreds of renters and homeowners can save money from the electricity that is generated by the project. By subscribing to a project, a homeowner earns credits on their electric bill every month from their portion of the solar that's generated by the project, accessing the benefits of solar without installing panels on their home.
There are several risks associated with the development of the Project. The development of any project is subject to receipt of 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 economic. 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
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 financing to be able to construct the Project; the intention to add the Project to the Company's independent power producer portfolio; 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
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