Transaction is for the sale and subsequent
construction of four solar projects in New York State.
The projects will utilize Qcells modules
manufactured in the USA.
Nearly $2.8
billion is being invested by Qcells to boost U.S. domestic
solar manufacturing and innovation to support and accelerate the
U.S. clean energy transition.
This news release constitutes a "designated news
release" for the purposes of the Company's prospectus supplement
dated May 23, 2024, to its short form
base shelf prospectus dated May 2,
2023
TORONTO, Jan. 6, 2025
/PRNewswire/ - SolarBank Corporation (NASDAQ: SUUN)
(Cboe CA: SUNN) (FSE: GY2) ("SolarBank" or the
"Company") is pleased to announce that Qcells, through an
affiliate, has entered into agreements to acquire from the Company
a total of four ground-mount solar power projects that are under
development in upstate New York
(the "Projects") representing 25.577 MW. The Projects are known as
Gainesville, Hardie, Rice Road and
Hwy 28.
Qcells is a subsidiary of South
Korea's Hanwha Solutions (KRX: 009830). Qcells is one of the
world's leading clean energy companies, recognized for its
established reputation as a manufacturer of high-performance,
high-quality solar cells and panels, portfolio of intelligent
storage systems, and growing international pipeline of large-scale
renewable energy projects. The company is headquartered in
Seoul, South Korea (Global
Executive HQ) with its diverse international manufacturing
facilities in the U.S., Malaysia,
and South Korea.
SolarBank originated the sites in upstate New York and the Projects have received
positive interconnection results via a completed Coordinated
Electric System Interconnection Review (CESIR). The Projects will
be developed as four separate solar power projects. The Company
will now continue to build the Projects for Qcells to commercial
operation via engineering, procurement, and construction ("EPC")
agreements. The sale of the Projects and EPC agreement have a total
value of approximately US$49.5
million. The Company also expects that it will retain an
operations and maintenance contract for the Projects following the
completion of construction.
Dr. Richard Lu, Chief
Executive Officer of SolarBank commented: "I am extremely
pleased to have entered into this transaction with Qcells. Qcells
is making a substantial investment in U.S. domestic manufacturing
for solar panels and SolarBank is excited to be supporting them in
developing these four projects using made in the USA equipment."
"At Qcells, we are dedicated to delivering clean,
affordable energy solutions to communities nationwide and around
the globe," said Jin Han,
Corporate Officer, Head of Distributed Energy at Qcells North
America. "With a commitment of nearly $2.8 billion, we are working hard to onshore
production of the solar supply chain from ingots and wafers to
cells and finished panels. Each step we take strengthens domestic
solar manufacturing, drives the clean energy transition and brings
us closer to a sustainable future for all."
Once completed, the Projects will be operated as community solar
projects. Community solar is a group of solar panels with access to
the local electricity grid. Once the panels are turned on and
generating electricity, clean energy from the site feeds into the
local power grid. Depending on the size and number of panels the
project has, dozens or even hundreds of renters and homeowners can
save money from the electricity that is generated by the project.
By subscribing to a project, a homeowner earns credits on their
electric bill every month from their portion of the solar that's
generated by the project, accessing the benefits of solar without
installing panels on their home. The Projects are expected to be
eligible for incentives under the New
York State Energy Research and Development Authority
(NYSERDA) NY-Sun Program.
There are several risks associated with the development of the
Projects. The development of any project is subject to required
permits, the continued availability of third-party financing
arrangements for Qcells, the risks associated with the construction
of a solar energy project. In addition, governments may revise,
reduce or eliminate incentives and policy support schemes for solar
energy projects, which could result in future projects no longer
being economic. Qcells will pay the purchase price for the
Projects, and construction costs under the EPC agreements, in
stages. If Qcells does not obtain the necessary financing, the
Company is obligated to reacquire the projects subject to retention
of an initial payment. Please refer to "Forward-Looking Statements"
for additional discussion of the assumptions and risk factors
associated with the projects and statements made in this press
release.
About Qcells
Qcells is one of the world's leading
clean energy companies, recognized for its established reputation
as a manufacturer of high-performance, high-quality solar cells and
modules, portfolio of intelligent storage systems, and growing
international pipeline of large-scale renewable energy projects.
The company is headquartered in Seoul,
South Korea (Global Executive HQ) with its diverse
international manufacturing facilities in the U.S., Malaysia, and South
Korea. Qcells offers Completely Clean Energy through the
full spectrum of photovoltaic products, storage solutions,
renewable electricity contracting and large-scale solar power
plants. Through its growing global business network spanning
North America, Europe, Asia,
South America, Africa and the Middle East, Qcells provides excellent
services and long-term partnerships to its customers in the
utility, commercial, governmental and residential markets. For more
information, visit: https://qcells.com/us.
Safe-Harbor Statement
This press release contains
forward-looking statements. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar
statements. Among other things, the quotations from management in
this press release and Qcells' operations and business outlook,
contain forward-looking statements. Such statements involve certain
risks and uncertainties that could cause actual results to differ
materially from those expressed in or suggested by the
forward-looking statements. Except as required by law, Qcells does
not undertake any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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 expected energy
production from the solar power projects mentioned in this press
release; the receipt of incentives for the Projects; the expected
value of the EPC Contract; the retention of an operations and
maintenance contract for the Projects; Qcells receipt of financing
to acquire and construct the Projects; 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 for the Projects;
Qcells obtaining financing to complete the purchase and
construction of the Projects; 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; Qcells may
not obtain the financing required to complete the purchase and
construction of the Projects and in such case the Company shall be
required to repurchase the Projects; 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 or Qcells is subject to
may present technical, regulatory and economic barriers to the
purchase and use of solar power or the Projects; 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/us49-5-million-transaction-with-qcells-announced-by-solarbank-302342458.html
SOURCE SolarBank Corporation