Solar Alliance Energy Inc. completed the acquisition of a 389-kW project in New York State from Abundant Solar Power Inc. This is the second project Solar Alliance will purchase and operate under a 25 year power purchase agreement. Solar Alliance has two projects that it currently owns. The company plans to have 1.7MW of projects under its control and in operation by 2022.
“Solar Alliance continues to execute on our aggressive growth strategy with the acquisition of this second solar project in New York State,” says CEO Myke Clark. “Our target of 1.7 MW of operating solar projects by the end of 2022 is ambitious and achievable and represents substantial progress for Solar Alliance as we build a stable, growing portfolio of assets.”
“Our team also continues to design, engineer and construct large projects for commercial and utility customers,” adds Clark. “We have seen unprecedented growth in the size and number of large projects we are building for third-party customers. This strategy – combining sales to third party customers with the stable, recurring revenue from our own solar assets – is now paying strong dividends and we anticipate continued growth in both sectors in 2022.”
Construction will begin in the early 2022 with commercial operation expected in Q2 2022. Construction on the company’s other solar project in New York, a 298 kW project, will take place simultaneously. Both projects have been approved for panels and both have power purchase agreements with local governments.
Solar Alliance will finance the project through a combination long term debt, equity, and tax equity. The net capital cost of the project is estimated to be $640,000. This project falls within the company’s unlevered target of 7-9% internal rate of return for projects at this stage in development.