Project is the first in the 25 Megawatt $39,000,000 Pipeline Agreement Signed with Sundamental
VANCOUVER, BC & KNOXVILLE, TN / ACCESSWIRE / October 23, 2019 / Solar Alliance Energy Inc. (‘Solar Alliance' or the ‘Company') (TSX-V: SOLR, OTC: SAENF) is pleased to announce it has completed its construction management work on the 715 kilowatt ('kW') ground mount solar installation in Groveland, Florida for BE Trilogy Solar Project LLC ('Trilogy Project') as announced on June 5, 2019. The completion of the Trilogy Project is a positive outcome that has led to the Company now beginning the work with Sundamental LLC ('Sundamental'), an affiliate of Trilogy, to jointly assess Sundamental's 18 solar projects located in New Jersey, Illinois, Texas and California (the '25 MW Pipeline').
Under a Solar Development Agreement signed with Sundamental in June 2019, Solar Alliance has an exclusive option to provide construction management or full engineer, procurement and construction ('EPC') services for the projects in the 25 MW Pipeline. The agreement also contains an option for Solar Alliance to contribute equity to any of the 18 projects in the pipeline, which could result in another recurring revenue stream to Solar Alliance. The 25 MW Pipeline have a combined capital cost of $39,000,000 with a potential 10-15% gross profit margin. Profit attributable to Solar Alliance would vary by project depending on the type of contract signed for each. EPC projects generate higher profit margins while construction management contracts generate lower revenue totals but higher margins. The Company anticipates the projects in the 25 MW Pipeline will be financed by Sundamental or an affiliate that will provide funding for equipment and other costs of goods.
To put this in perspective, the 25 MW Pipeline is the equivalent to installing more than 3,600 average sized residential solar systems.
'The completion of Solar Alliance's work on the Trilogy project is a positive milestone as we move forward on the rest of the solar projects in the Sundamental pipeline,' said CEO Myke Clark. 'We are working with Sundamental to fully assess the 25 megawatt pipeline and prioritize the next project. Sundamental has created a robust pipeline of solar projects across diverse jurisdictions and working with them presents a tremendous opportunity to continue to grow our business. Our project management approach to projects in new jurisdictions allows us to leverage our extensive solar experience and deliver a quality project to the customer, which we look forward to doing with Sundamental,' concluded Clark.
The individual system sizes and locations in the 25 MW Pipeline are detailed below:
Myke Clark, CEO
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Solar Alliance Sales
Myke Clark, CEO
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 California, Tennessee, North/South Carolina and Kentucky and has an expanding pipeline of solar projects. Since it was founded in 2003, the Company has developed wind and solar projects with a combined capital cost exceeding $1 billion 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.
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SOURCE: Solar Alliance Energy Inc.
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