VANCOUVER, British Columbia, Feb. 15, 2018 (GLOBE NEWSWIRE) — Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V:SOLR) is pleased to provide an update on its residential and commercial solar operations and corporate activities. Solar Alliance completed several transactions at the end of 2017 that will allow the Company to capitalize on the demand for solar energy and it is poised to significantly improve its revenue results.
“Solar Alliance is extremely excited about the prospects for 2018 and we believe the coming year will be our most productive to date,” said Chairman and CEO Jason Bak. “Our commercial & industrial (‘C&I’) team has performed well and we expect to see a steady stream of new projects moving through the pipeline in the coming weeks and months. The closing of the $1.4 million Concord Green Energy transaction and the $2 million convertible loan have capitalized the Company and allowed our expansion in the C&I space. We anticipate significant growth in the C&I solar division, and we are planning an innovative marketing campaign with our spokesperson, William Shatner, for our residential sales,” concluded Bak.
Commercial & Industrial Solar Acquisition
In November, 2017 Solar Alliance completed the acquisition of Solar Alliance Southeast LLC (formerly Aries Solar, LLC), an established C&I solar company that is licensed to operate in four Southeast U.S. states. The team of engineers, project managers and developers has been fully integrated into Solar Alliance and is moving forward aggressively to convert a strong pipeline of opportunities into revenue. Led by Harvey Abouelata, Vice President, Commercial Solar, the team has been constructing Solar Alliance’s first 182 kW solar system in North Carolina. This acquisition is part of the plan to increase Solar Alliance’s technical capabilities across the spectrum of residential, commercial and utility scale solar projects.
Commercial & Industrial Solar Update
Solar Alliance expects to announce additional C&I projects in the coming months as pipeline opportunities are converted to revenue. The Solar Alliance C&I team has approximately 45 projects at various stages including prospecting, proposal, and contract negotiations. As announced on July 10, 2017 the total potential revenue from all projects if built is approximately US $18,838,000. The potential net profit that may be derived from the projects if built is approximately US $3,790,000. The Company anticipates the projects in the pipeline will be built over the upcoming year and will be financed through a variety of third party mechanisms that will provide funding for equipment and other costs of goods. The Company does not anticipate a material funding requirement to move the projects through the various development stages to installation. This pipeline is in addition to the following C&I projects in California and Illinois:
- Coachella Brands, Inc. (“Coachella”) – In October 2017 the Company signed an agreement with Coachella for the design and construction of a 600 kW commercial-sized solar project in California. The project consists of a ground mounted solar installation at a new legal cannabis growing and processing facility. The Company expects to complete the final feasibility study shortly and begin construction on the first phase of the project soon thereafter. The Company believes the signing of this commercial solar project agreement with Coachella provides an entry into an extremely attractive and developing market with an aggressive growth curve.
- Los Angeles Commercial Project – Solar Alliance continues to work closely with a large development company on an 800kW commercial solar project in Los Angeles. The project consists of a rooftop solar installation and a carport solar installation at a Los Angeles mid-rise, multi-tenant office building. The final feasibility study for this project is almost complete and no issues have been identified and it will be submitted for permitting in Q1.
- Murphysboro, Illinois – The City of Murphysboro, Illinois, has partnered with Solar Alliance and signed a Memorandum of Understanding (“MOU”) for the 1 MW solar project (the “Project”). The purpose of the MOU is to outline the process and responsibilities of the City of Murphysboro and Solar Alliance for the successful completion of financially viable solar project, as a part of the “Renewing the Murphysboro community through Green Energy jobs” initiative. The approximate capital cost of the Project is US $1,720,000, which represents the top line revenue to Solar Alliance minus costs of goods. Final revenue projection and profit margin would be determined after final design. Solar Alliance and Murphysboro are working on securing offtake agreements for the project’s output.
“I am excited to help facilitate this project in Murphysboro and I am confident that the proposal submitted by Solar Alliance to the State of Illinois will be successful,” said Murphysboro Mayor Will Stephens. “The progress to this point is only a beginning, but it is also a testament to what bi-partisan governance, public-private partnerships, and working together can accomplish.”
Residential Solar Update
Solar Alliance is planning a disruptive approach to the marketing of residential solar systems. The Company manages an experienced team of solar professionals in San Diego and Los Angeles and is implementing a short and mid-term sales strategy focused on evolving sales methodologies. The addition of Alan Fleishman as President has provided experience to the residential sales team as he brings extensive coaching, mentoring, training, and motivation to sales managers and consultants to ensure that each had the necessary tools and skills to succeed in their roles.
Solar Alliance continues to work closely with William Shatner on developing a campaign for marketing the Company to a broader range of potential customers. The Company completed the installation of a 6.3 kW solar system on William Shatner’s home. The Solar Alliance team of installation professionals worked closely with Mr. Shatner to determine his solar requirements, design a custom solution and ensure a flawless installation.
“The installation process was straightforward and the team was professional. We are already experiencing the benefits of solar energy,” said Mr. Shatner. “I am committed to creating a better world through action and this is one small step towards a cleaner future that is less dependent on fossil fuels. I am proud to be part of an alliance of homeowners who have made the switch to solar. You can save money and help the planet by going solar. I did!”
Solar Alliance is also making positive progress on integrating a residential battery storage option into the Company’s product offering. The Company has been granted Approved Developer status for the California Self-Generation Incentive Program (“SGIP”). SGIP provides incentives to support existing, new, and emerging distributed energy resources including home battery storage. Solar Alliance has been allocated a portion of the incentives available for residential and small commercial storage systems and will manage the incentive applications for customers. Solar Alliance continues to negotiate with a home battery provider and anticipates signing an accredited dealer agreement in the near future.
In December 2017, the Company completed the Plan of Arrangement with Concord Green Energy, Inc. (“Concord Green Energy”), involving the acquisition by Concord Green Energy of certain wind energy assets owned by the Company for $1,400,00. The Company retained an 85% controlling interest in the Wildmare Wind Energy project in British Columbia and will operate the project. In January 2018, the Company entered into a convertible loan agreement with a lender for $2,000,000 to fund its ongoing residential and commercial solar operations and expansion plans. The combination of the convertible loan and the proceeds from the Concord Green Energy transaction have provided Solar Alliance with a stable financial platform to grow the Company’s residential and commercial solar business.
The company recently appointed Dan O’Brien to the role of Chief Financial Officer and Doris Meyer to the role of Corporate Secretary. Dan O’Brien is a CPA, CA with fifteen years’ experience, of which, the last five years have been as the Chief Financial Officer for exploration and development companies listed on the Toronto Stock Exchange (“TSX”) and TSX Venture Exchange. Prior to that, Mr. O’Brien was a senior manager at a leading Canadian accounting firm where he specialized in the audit of public companies in the mining and resource sector. Doris Meyer has over 30 years’ experience as both a Chief Financial Officer and Corporate Secretary primarily in the mining industry.
Jason Bak, Chairman and CEO
For more information:
Solar Alliance Investor Relations
About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is a sales, marketing and development company focused on residential, commercial and industrial solar installations. Since we were founded in 2003, we have developed wind and solar projects that provide enough electricity to power 150,000 homes. Solar Alliance is committed to an exceptional customer experience, effective marketing campaigns and superior lead generation in order to drive sales and generate value for shareholders. Our passion is improving life through ingenuity, simplicity and freedom of choice. We make solar simple and our goal is to install solar on every available rooftop in America.
Statements in this news release, other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, constitute Forward-looking statements. The words “would”, “will”, “expected” and “estimated” or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to the ability to raise sufficient capital, changes in economic conditions or financial markets, litigation, legislative or other judicial, regulatory and political competitive developments and technological or operational difficulties. Consequently, actual results may vary materially from those described in the forward-looking statements.
“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”