Solar Alliance Energy Inc., is pleased to announce it has signed an agreement (the "Agreement") for the design and construction of an approximately US$3,500,000 commercial solar project in Los Angeles. The project, which marks the second commercial-scale solar project for Solar Alliance, consists of a rooftop solar installation and a carport solar installation at a Los Angeles mid-rise, multi-tenant office building. The Solar Alliance team analyzed the building owner's needs, operational requirements and utility usage to develop a custom solar system that will offset more than 75% of their annual electricity requirements.
"Solar Alliance has taken a prudent, professional approach to the development of our commercial division and this agreement is the result of many months of work," said Chairman and CEO Jason Bak. "We are committed to building relationships with commercial property owners and developers in order to illustrate the financial benefits of solar. This project will save the building owners an estimated US$20,000,000 in electricity costs over the life of the system and it illustrates the exciting growth prospects for Solar Alliance in the virtually untapped commercial solar sector."
The next stage in the project's development is to complete a final feasibility study and grid connection application. Solar Alliance expects all necessary agreements and financing options to be completed by the end of September with construction commencing before the end of 2017. The US$3,500,000 capital cost is an estimate that will be refined after the feasibility study.
"The signing of this commercial solar project agreement comes at a perfect time, as we work our way through the acquisition of Aries Solar, LLC," concluded Bak. "Aries is an established turn-key commercial solar energy solution provider with industry experts that focus on engineering, procurement, and construction needs. This commercial project in L.A. and the Aries acquisition set the stage for increasing growth in commercial solar sales."
The building owner is a large developer and owner of several similar properties in the Los Angeles area. Solar Alliance is committed to developing a long-term relationship with the owner and as part of the Agreement, the Company will issue 250,000 warrants exercisable at a price of $0.18 per share for a period of two years. The warrants are subject to the approval of the TSX Venture Exchange.
Source: Solar Alliance Energy Inc.
Date: Aug 15, 2017