Solar Energy… A once in a decade opportunity

Apr 9, 2024 By MarketDepth

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SolarBank Corporation (NASDAQ:SUUN) at a glance

• $45 million acquisition of Solar Flow-Through Funds
• US$41 million partnership with billion dollar Honeywell International
• $36-million in EPC contracts awarded to Solarbank for the construction of three separate Battery Energy Storage System projects in Ontario, Canada
• Recently Up-Listed to NASDAQ Global Market
• $45-50 million of forecasted revenue for 2024
• Growth of independent power producer portfolio with the acquisition of control of two corporations, OFIT GM Inc. and OFIT RT Inc., that hold solar projects located in Ontario with a combined capacity of 2.5 megawatts;
• Upon closing of Solar Flow-Through Funds acquisition 47 Mega Watts of clean energy expected to be generated annually

Disseminated on behalf of SolarBank Corporation (NASDAQ:SUUN) Please refer to “important Notice and Disclaimer” at the end of this document for important additional information and risk factors.

SolarBank Corporation (NASDAQ:SUUN) has been on a monumental rise by signing multi-million dollar deal after another. The latest $45 Million deal was the proposed acquisition of Solar Flow-Through Funds which provides SolarBank with $9.4 Million annually in recurring revenue to SolarBank. That deal came on the heals of a US$41 million deal with Honeywell.

SolarBank IPO’d a little over 1 year ago and has had a rapid rise in Market cap and revenue. With 2023 alone delivering a significant $18.4 Million in revenue.

Not only is this company setting themselves up with $100+ million in contracts that have been announced since IPO, they have a goal to disrupt the whole industry. SolarBank is establishing itself as a potential competitor to industry leaders such as First Solar, Canadian Solar and SolarEdge.

2024 is the year of Solar Energy

SolarBank Corporation’s (NASDAQ:SUUN) 2024 revenue has doubled with guidance coming in at $45-50 Million. With the company’s market cap under $200 Million we see this as a big opportunity to add this to your watchlist and follow their unbelievable growth.

Global Energy Crisis?

With global energy coming under crippling tightening measures and clean energy being in high demand, Tech giants have been doubling down on major investments in the renewable energy sector.

3 of the largest companies globally are investing billions in the clean energy sector! What do they know?

Apple has thrown down the gauntlet and committed to 100% clean energy production by 2030 and $4.7 billion allocated for renewable energy_(1.).

Amazon is the biggest global investor in renewable energy with over 500 clean energy projects globally₍₅₎.

Microsoft signed historic agreement with Qcells to provide 12GW of clean energy equivalent to powering 1.8 million homes₍₄₎.

The opportunity we have now in Solar Energy is parallel to the AI Boom of 2023.

Nvidia skyrocketed as one of the biggest market movers in the last year. As the tide shifts away from AI we are now in the midst of the Green Energy Revolution. As gas prices surge, taxes climb and traditional energy costs soar the hunt for renewable energy has sent solar energy stocks to new highs.

Why are Investors Bullish on Solar Energy?

Simply put, “The demand is outstripping the supply!” Globally as the world transitions away from traditional over priced and heavily manipulated energy the new era of opportunity has arisen.

Once in a Decade Opportunity

For the first time ever solar energy output topped coal in Texas by providing 3.26 MWh to the grid vs. coal supplying 2.96 MWh₍₆₎. This has sent shockwaves through the whole industry as investors start to shift to greener pastures.

As hedge funds and retail traders strategically realign their portfolios, transitioning from traditional energy investments to the cutting-edge frontier of energy’s future, expect a dynamic upswing in sector growth.

Top 5 reasons to consider SolarBank Corporation (NASDAQ:SUUN)

• $45 million acquisition of Solar Flow-Through Funds
• USD$41 million partnership with billion dollar Honeywell International (HON)
• $36-million in EPC contracts awarded to Solarbank for the construction of three separate Battery Energy Storage System projects in Ontario, Canada
• $45-50 million of forecasted revenue for 2024
• Recently up-listed to NASDAQ Global Market

*Please note all dollar values are in Cad unless noted

However, you should be aware that there are risks to the business of Solarbank Corporation:

• The company may be adversely affected by volatile solar power market and industry conditions; in particular, the demand for its services may decline, which may reduce its revenues and earnings.
• The execution of the company’s growth strategy depends upon the continued availability of third-party financing arrangements for the company and its customers and 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, which could cause demand for the company’s services to decline.
• General global economic conditions may have an adverse impact on our operating performance and results of operations.
• Developing and operating solar projects exposes the Company to various risks and the markets in which the company competes are highly competitive and evolving quickly;

Please also refer to “Important Notice and Disclaimer” at the end of this document for important additional information and risk factors.

Important Notice and Disclaimer

SolarBank Corporation’s (the “Company’s”) revenue guidance is considered to be financial outlook. The purpose of the financial outlook is to assist investors, shareholders, and others in understanding certain financial metrics relating to expected 2024 financial results for evaluating the performance of the Company’s business and is dated as of the December 31, 2023. This information may not be appropriate for other purposes. Information about the Company’s guidance, including the various assumptions underlying it, is forward-looking and should be read in conjunction with the forward-looking statement disclaimer below and the related disclosure and information about various economic, competitive, and regulatory assumptions, factors, and risks that may cause the Company’s actual future financial and operating results to differ from what it currently expects.

This report 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 report ‎contains forward-looking statements pertaining to the Company’s expectations regarding its industry trends and overall market growth; the Company’s growth strategies the expected energy production from the solar power projects mentioned in this press release; the reduction of carbon emissions; the receipt of incentives for the projects; the expected value of EPC Contracts; future revenue guidance 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 report should not be unduly relied upon. These ‎statements speak only as of the date of this report.‎

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 report, the Company has made various material assumptions, including but not limited to: obtaining the necessary regulatory approvals; 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 final long form prospectus of the Company dated February 10, 2023, and other public filings of the Company, which include: the Company may be adversely affected by volatile solar power market and industry conditions; 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 is subject to may present technical, regulatory and economic barriers to the purchase and use of solar power; 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 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 report are expressly qualified in their entirety by ‎this cautionary statement.‎

1. https://www.apple.com/environment/pdf/Apple_Supplier_Clean_Energy_Program_Update_2022.pdf
2. https://www.apple.com/ca/newsroom/2021/03/apples-four-point-seven-billion-green-bond-spend-is-helping-to-create-one-point-two-gigawatts-of-clean-power/
3. https://www.aboutamazon.eu/news/sustainability/amazon-sets-a-new-record-for-most-renewable-energy-purchased-by-a-single-company
4. https://www.orrick.com/en/News/2024/01/Microsoft-and-Qcells-Reach-Historic-12GW-Renewable-Energy-Agreement
5. https://sustainabilitymag.com/renewable-energy/amazon-leads-corporate-charge-to-a-clean-energy-future
6. https://electrek.co/2024/04/05/solar-topped-coal-in-texas-for-the-first-time-ever-in-march

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