7-Megawatt Solar Project in Development by SolarBank in Pennsylvania

Rhea-AI Summary

SolarBank (NASDAQ: SUUN) has announced plans to develop a 7 MW DC ground-mount solar power project in Lancaster County, Pennsylvania. This Stauffer project is part of a larger 24.8 MW DC initiative, following the recently announced 13.8 MW DC project. The proposed community solar project would be one of the first in Pennsylvania, allowing residents to access solar energy without installing panels on their properties.

The project's development is contingent on the final approval of House Bill 1842 by the Pennsylvania State government, which enables community solar projects. SolarBank has secured a lease for the project site and will proceed with permitting, interconnection, and financing steps. The company aims to power approximately 820 homes with this project, aligning with its goal of providing clean and affordable energy to thousands of households.

Positive

• Expansion into Pennsylvania's emerging community solar market
• Part of a larger 24.8 MW DC project portfolio
• Potential to power approximately 820 homes with clean energy
• Aligns with company's strategic focus on community solar projects

Negative

• Project development subject to final approval of House Bill 1842
• Risks associated with interconnection approval, permitting, and financing
• Potential changes in government incentives and policy support for solar power

Insights

Energy Policy Analyst

The Pennsylvania House of Representatives passing House Bill 1842 marks a significant step towards enabling community solar projects in the state. This legislative progress opens up new market opportunities for companies like SolarBank. The proposed 7 MW DC Stauffer project, part of a larger 24.8 MW DC initiative, could potentially power 820 homes with clean energy. However, investors should note that the bill is still under Senate review and final approval is important for the project's viability as a community solar development. The community solar model allows broader access to solar benefits, potentially expanding SolarBank's customer base and revenue streams. While this represents a positive development, the project faces risks including pending approvals, financing and potential policy changes that could impact economic viability.

Renewable Energy Expert

SolarBank's strategic focus on community solar aligns well with growing trends in the renewable energy sector. The Stauffer project, if approved, would be one of Pennsylvania's first community solar installations, positioning SolarBank as an early mover in this market. Community solar projects typically have lower customer acquisition costs and can reach a broader demographic, including renters and those without suitable rooftops for solar installations. This approach could lead to more stable and diverse revenue streams for SolarBank. The total 24.8 MW DC portfolio represents a significant capacity addition for the company. However, investors should be aware of the project development risks, including interconnection approvals, permitting processes and securing financing. The success of this project could serve as a blueprint for future expansions in other states considering similar community solar legislation.

24.8 MW of Projects Expected in the Near Term

820 Homes Expected to be Powered by this Project

SolarBank's First Community Solar Project in Pennsylvania

TORONTO, Oct. 14, 2024 /PRNewswire/ - SolarBank Corporation (NASDAQ: SUUN) (Cboe CA: SUNN) (FSE: GY2) ("SolarBank" or the "Company") is excited to announce its plans to develop a 7 MW DC ground-mount solar power project known as the Stauffer project (the "Project") on a site located in Lancaster County, Pennsylvania. This Project is in addition to the 13.8 MW DC project announced last week, both of which are part of a set of projects expected to total 24.8 MW DC in size.

The proposed community solar project – which would be one of the first of its kind in Pennsylvania – would provide residents, including renters and those without suitable rooftops, with access to solar energy without the commitment of installing panels on their own properties.

On March 26, 2024, the Pennsylvania House of Representatives passed House Bill 1842, a bill enabling the potential development of community solar projects in the state, paving the way for companies like SolarBank to expand into the region and provide clean energy to residents of various income levels. The bill is currently under review by the Senate of Pennsylvania.

"Community solar projects enable the benefits of renewable energy to proliferate throughout communities in North America," stated SolarBank CEO, Dr. Richard Lu, "Community members can subscribe to a shared solar power source and contribute to building a sustainable future without having to install their own panels. We are excited for the next steps in developing the Stauffer project, which would be a significant milestone in SolarBank's community solar portfolio, in addition to being a part of Pennsylvania's historic move toward a cleaner future."

The Company has secured a lease over the Project site and will continue to work to complete the next steps in permitting, interconnection and securing the necessary financing for construction of the Project. The development of the Project as a community solar project will be subject to the final approval of House Bill 1842 by the State government of Pennsylvania.

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. 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 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 Canada and the USA. The Company develops solar, Battery Energy Storage System (BESS) and EV Charging 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 North America 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 100 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; the receipt of incentives for the Project; 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 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 solar project in Pennsylvania?

SolarBank's new Stauffer project in Lancaster County, Pennsylvania, has a capacity of 7 MW DC.

How many homes is the Stauffer project expected to power?

The Stauffer project is expected to power approximately 820 homes with clean energy.

What is the total capacity of SolarBank's expected projects in the near term?

SolarBank expects to develop projects totaling 24.8 MW DC in the near term, including the Stauffer project.

What legislation is important for SolarBank's community solar project in Pennsylvania?

House Bill 1842, which enables the development of community solar projects in Pennsylvania, is important for SolarBank's project to proceed.

What is SolarBank's stock symbol on NASDAQ?

SolarBank 's stock symbol on NASDAQ is SUUN.