6.41 MW Solar Project Under Development by SolarBank in Bloomfield, New York
SolarBank announced plans to develop a 6.41 MW DC ground-mount solar project in Bloomfield, New York, named the Rice Road Project. The project aims to provide green energy to over 800 homes and will operate as a community solar site, allowing subscribers to earn credits on their electric bills. The project is eligible for incentives under the NY-Sun Program from the New York State Energy Research and Development Authority (NYSERDA).
SolarBank has secured a lease for the project site and received interconnection approval. The next steps include completing the permitting process and securing financing for construction. The development faces risks such as obtaining necessary permits and third-party financing, as well as potential changes in government incentives and policies.
- SolarBank's Rice Road Project will provide green energy to over 800 homes.
- The project is eligible for NYSERDA's NY-Sun Program incentives.
- SolarBank has secured a lease and received interconnection approval for the project site.
- The project is expected to operate as a community solar site, offering subscribers electricity bill credits.
- The project faces risks related to obtaining necessary permits.
- The availability of third-party financing arrangements is uncertain.
- Government incentives and policy support schemes for solar power could be revised, reduced, or eliminated, impacting project economics.
- Construction risks associated with developing a solar power project could pose challenges.
Insights
The development of a 6.41 MW DC ground-mount solar power project by SolarBank in Bloomfield, New York, is noteworthy. This project is poised to contribute significantly to the local grid by providing green energy to over 800 homes. Community solar projects like this one are essential for facilitating the transition to renewable energy, as they allow individuals who cannot install solar panels on their homes to benefit from solar energy. The project’s eligibility for NYSERDA incentives under the NY-Sun Program is an added advantage.
However, several risks must be considered. The completion of the project is contingent on the finalization of the permitting process and securing necessary financing. Any changes in government incentives or policies could impact the project's financial viability. Investors should also be aware of potential delays and costs associated with construction and interconnection approvals.
In summary, while the project has substantial potential benefits, the risks associated with financing and regulatory approvals warrant close monitoring.
SolarBank's announcement to develop a 6.41 MW solar project in Bloomfield is a positive step towards bolstering its project portfolio and revenue streams. The NYSERDA NY-Sun Program incentives could significantly enhance the project's profitability. However, the company still needs to secure financing, which could be a hurdle depending on market conditions and investor sentiment.
In financial terms, community solar projects like these tend to have stable, long-term revenue potentials thanks to the subscription model. This model provides predictable cash flows through subscriber credits, allowing SolarBank to generate steady income once the project is operational. Investors should be aware, though, that any delays in project completion could affect expected returns and timelines.
Given the favorable regulatory environment and the potential for stable future revenues, this development can be considered a positive indicator for SolarBank’s growth prospects.
The decision by SolarBank to undertake a large-scale community solar project in Bloomfield aligns well with the increasing trend towards decentralized power generation. Community solar projects are gaining traction as they provide a practical solution for individuals who cannot install solar panels on their properties. This approach taps into the growing demand for renewable energy solutions among environmentally conscious consumers.
The strategic location in New York, a state with progressive renewable energy policies, enhances the project's market viability. Enrollment in the NY-Sun Program further boosts its attractiveness by potentially lowering upfront costs through incentives. However, market dynamics such as shifts in policy support and competition from other renewable energy projects should be carefully considered. Investors should monitor how SolarBank manages these external factors to maintain competitive advantage.
Overall, the project stands to benefit from strong market demand and favorable regulatory support, making it a promising venture within the renewable energy sector.
- 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.
The Company has secured a lease over the Project site and received interconnection approval for the Project. As it has received interconnection approval, the Company will work to complete the permitting process and secure the necessary financing for the construction of the Project.
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 interconnection approval, 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 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 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
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