Solar Alliance signs MOU for tax equity financing for New York solar projects
Solar Alliance will own and operate the assets as construction on both projects nears completion
TORONTO and KNOXVILLE, Tenn., Oct. 26, 2022 (GLOBE NEWSWIRE) -- Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR, OTCQB: SAENF) is pleased to announce it has signed a Memorandum of Understanding (“MOU”) with Redball Energy for the provision of tax equity financing of up to US $530,000 for the Company’s initial portfolio of solar projects in the state of New York. This efficient investing structure can be utilized to acquire and develop additional solar energy projects in the United States.
The tax equity investment will be through a customary partnership-flip agreement, which is non-dilutive and structured at the individual project level, which agreement is being finalized by the parties. The MOU also outlines the intention of the parties to collaborate on future tax equity investments as Solar Alliance expands its portfolio of assets under ownership.
“Securing tax equity financing for our New York projects is a critical milestone,” said CEO Myke Clark. “Tax equity financing allows Solar Alliance to reduce the amount of sponsor equity required for these two projects and increases the return on investment. Combined with future project debt, the tax equity structure can be replicated as we target additional solar projects and seek to grow our portfolio of assets that will generate recurring revenue for Solar Alliance.”
Solar Alliance will own and operate two ground-mounted solar projects in New York:
- US1: 389-kW solar energy facilities located in the Village of Union Springs, Cayuga County, New York.
- VC1: 298-kW solar energy facility located in the Village of Cazenovia, Madison County, New York.
Both projects are expected to achieve commercial operation in Q4, 2022.
“The recently passed Inflation Reduction Act is driving increased investment opportunities for the projects Solar Alliance is developing and these New York projects are a prime example of the benefits of the legislation. The legislation extended solar and storage investment tax credits for at least 10 more years and retroactively increased the credits to 30% or more in some cases. This tax-efficient financing capability is critical to building out a portfolio of solar assets that will deliver long-term recurring revenue,” concluded Clark.
In connection with the MOU, the Company will issue 300,000 warrants to Redball Energy exercisable at a price of CA $.08 per share for a period of two years. The warrants are subject to the approval of the TSX Venture Exchange.
Myke Clark, CEO
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About Solar Alliance Energy Inc. (www.solaralliance.com) Solar Alliance is an energy solutions provider focused on residential, commercial and industrial solar installations. The Company operates in Tennessee, Kentucky, North/South Carolina and Illinois and has an expanding pipeline of solar projects. Since it was founded in 2003, the Company has developed $1 billion of renewable energy projects that provide enough electricity to power 150,000 homes. Our passion is improving life through ingenuity, simplicity and freedom of choice. Solar Alliance reduces or eliminates customers' vulnerability to rising energy costs, offers an environmentally friendly source of electricity generation, and provides affordable, turnkey clean energy solutions.
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."