This Small Cap Solar Company Just Inked a Deal with $100 BILLION Corporation
Jan 31, 2024 By MarketDepth
BREAKING NEWS: SolarBank Corporation (CSE:SUNN, OTCQX:SUUNF) has entered into a partnership with Fortune 100 conglomerate, Honeywell International.
Find out why this deal is about to enhance the company’s growth, and is expected to more than double last fiscal year’s projected sales.
The following is a paid promotion disseminated on behalf of SolarBank Corporation (CSE:SUNN, OTCQX:SUUNF). Please refer to “Important Notice and Disclaimer” at the end of this document for important additional information and risk factors.
This Could Be An Interesting Growth Story…
SolarBank Corporation (CSE: SUNN, OTCQX:SUUNF) just inked a significant deal with Honeywell International (HON:NASD) that could send its revenue climbing.
The partnership will see Solarbank build three separate Community Solar projects.
… And it’s valued at over $41 million.
To put that in perspective, for the 2023 fiscal year SolarBank has provided revenue guidance of approximately $17-20 Million.
With this one contract, the company’s sales could more than double.
You know what other company this growth is reminiscent of? Nvidia (NVDA:NASDAQ).
Investors in Nvidia have enjoyed an increase in the company’s revenue as it fuels the AI boom…
- For the first 6 months of its 2024 financial year, Nvidia’s revenue is up over 175% over the prior two quarters.1
- Its second quarter revenue has more than doubled year-over-year.2
And Nvidia’s market cap has followed suit. The stock is up 239% this year3 – with Wall Street analysts seeing more room to run.
As reported by CNBC, an analyst at Elazar Advisors is expecting Nvidia’s stock price to jump 3-fold by next year, and he still thinks his growth numbers are “too conservative”.4
But while everyone’s talking about Nvidia, you may want to pay attention to SolarBank Corporation (CSE:SUNN, OTCQX:SUUNF).
While SolarBank is not in the AI space like Nvidia (it’s a small-cap company and operates in the solar sector as opposed to the technology sector) SolarBank is demonstrating revenue growth as well.
Since the company IPO’d on March 2, 2023, its market cap has more than QUADRUPLED.5
SolarBank was also recently added to the CSE25 Index meaning, it’s one of the 25 largest companies by market cap on the Canadian Securities Exchange (CSE).
SolarBank is currently the only renewable energy company named one of CSE’s Top 25.6
But this could just be the beginning because the renewable energy market is seeing significant growth.
Right now 79% of total U.S. energy production comes from fossil fuels.
- 36% is petroleum based.
- 32% is natural gas based.
- And 11% comes from coal.7
Only an estimated 13% comes from renewable energy.
But all that’s about to change…
“White House Pushing for 80% Clean U.S. Power Grid by 2030” 8
That means a complete FLIP of energy sources will be needed. It will require BILLIONS of dollars in infrastructure investments.9
In addition, not only has the White House provided a directive… they’ve also provided the means to do it.
In fact, the White House has set aside an unprecedented $369 billion for clean energy. This injection of cash and tax credits is a gamechanger.
One of the big reasons why power-providers haven’t made the switch to renewables already, is the cost. It was too expensive. With billions now available to offset those costs, it flips their incentives, making it not only feasible to go green, but achievable10 and desirable.
These funds are “the missing link” for companies to initiate change – and this funding is expected to dramatically transform America’s energy landscape as we know it.
In fact, Honeywell and SolarBank have had a longstanding partnership, spanning 5 years. Most recently…
- SolarBank completed two turnkey behind-the-meter solar power projects in New York state for Honeywell, where SolarBank provided start-to-finish project development, from site origination through construction completion.11
- And now, Honeywell has engaged SolarBank for three community solar power projects that are being built in upstate New York – having a contract value of $41 million.
“The relationship between Honeywell and SolarBank continues to grow and these projects represent the largest to date that will be constructed by the Company for Honeywell… The construction of these projects helps Honeywell achieve its remediation goals and support Honeywell’s ESG goals.”Dr. Richard Lu, Chief Executive Officer, SolarBank Corp.
This new project with Honeywell is part of a larger wave of “community solar gardens”, developed by SolarBank.
Community solar gardens are a concept that utilizes nearby vacant land to provide low-cost energy to neighborhoods around the nation.
Solar gardens could help trigger a switch away from large-scale, regional power plants to small, localized renewable power production.
In addition to solar gardens, SolarBank has developed dozens of behind-the-meter solar power plants.
In fact, Solarbank-developed projects generate enough energy to rank the company as one of the top 20 solar developers in the United States.
You see, SolarBank’s winning formula lies in the fact that it provides start-to-finish solar project management for its customers. From site selection to project financing to construction and asset management – SolarBank efficiently does it all, start to finish.
This unique expertise is highly desirable for potential corporate clients as it reduces the hassle for them and increases efficiencies.
Because as we alluded to earlier, Corporate America is going green. And this unlocks another opportunity for SolarBank.
Corporate America’s Green Revolution Could Be an Opportunity For SolarBank (CSE:SUNN, OTCQX:SUUNF)
In September 2019, over 1,500 Amazon employees threatened to walk out of work demanding the company reduce their environmental footprint. The strike, along with increasing consumer pressure, led Amazon CEO, Jeff Bezos, to pledge that Amazon will become carbon neutral by 2040.
A couple months later, over 2,000 Google employees signed a petition urging the company to meet several sustainability demands, including a commitment to having zero carbon emissions by 2030.12 Google succumbed to the mounting pressure and subsequently adopted a 2030 net-zero goal, making it one of Big Tech’s most aggressive sustainability plans.13
Similarly, Apple has set a goal of net-zero for its supply chain by 2030 AND wants to make all its products carbon neutral by the same date!14
That’s three of the world’s largest companies making significant commitments to clean energy. In fact…
Companies Are Investing Billions Into The Renewable Energy Market
Google is using solar panels to help power its data centers and offices across the globe… and has made a $3.5 billion investment through power purchase agreements, contracting to procure at least 3,000 megawatts of power across 26 solar projects.15
Amazon has 379 renewable energy projects, including 225 rooftop solar projects…16 its quietly become the largest corporate buyer of clean energy… in the world!17
Over the past three years, Amazon has purchased a whopping 15.7 gigawatts of solar and wind energy – 5 times the amount purchased by Google!
The details provided about these companies investment in renewable energy are examples only and SolarBank does not currently provide any products or services to these companies.
And it’s not just the tech companies investing in clean energy. Some of the world’s largest oil and gas companies are also investing in renewable energy.
BP is working towards a 2050 net zero goal. In June 2022, it purchased a 40.5% stake in the Asian Renewable Energy Hub.
And ExxonMobil recently announced plans to invest more than $15 billion over the next 6 years on lower greenhouse gas emissions initiatives.18
The drive towards clean, renewable energy is clear.
The details provided about these companies’ investment in, and goals with respect to, renewable energy are examples only and SolarBank does not currently provide any products or services to these companies.
Even the U.S. Securities and Exchange Commission (SEC) is supporting the clean energy movement.
It proposes Environmental, Social, and Governance (ESG) disclosure rules, which could require companies to report on climate-related matters in their registration statements and annual reports. These rules are currently in draft form but if adopted, the proposal would pivot climate reporting from being largely voluntary to being standardized, reliable, and consistent for all publicly listed companies.
That means a corporation’s environmental footprint could be printed next to the company’s bottom line… making their renewable energy investment even more critical.
Community Solar Projects Could Position SolarBank (CSE:SUNN, OTCQX:SUUNF) for Additional Growth
The IRA expands access to low-cost solar energy by providing federal incentives to state and local governments to invest in community solar gardens.
Community solar gardens are smaller-scale projects that are installed either on vacant land, or commercial rooftops. They generate electricity and feed into the local power grid.
Depending on the size of the garden or the number of panels, dozens or even hundreds of renters or local community members can subscribe and save money from the electricity that is generated by the project.
These gardens could become a big part of the future of energy in America. Twenty-two states and Washington D.C. have implemented policies that support community solar gardens. While projects are active in 39 states, Washington D.C. and Puerto Rico.19
SolarBank expects this to be a growth opportunity and is establishing itself as a leader in this space. The company has already developed projects in New York – which serve more than 4,000 community solar subscribers – with plans for more in the coming years.
Listen, America is at the precipice of a major change to its energy landscape. And companies like SolarBank Corporation (CSE:SUNN, OTCQX:SUUNF) could benefit immensely.
So if you’re looking for an opportunity that is part of “The Great Energy Flip”, you may want to consider reviewing SolarBank Corporation (CSE:SUNN, OTCQX:SUUNF) more closely.
- For one, the demand for solar energy has never been greater…
- Two, corporations are committing large amounts of money to go green…
- Three, the recently passed Inflation Reduction Act promises the U.S. Government’s largest investment in clean energy ever…
- And four, The White House is looking to mandate 80% of U.S. electricity to be clean energy by 2030 – a complete flip from the 13% it provides today.
Solar will play a key role in meeting that goal and companies like SolarBank Corporation (CSE:SUNN, OTCQX:SUUNF) could be beneficiaries.
Solar Stocks Provide an Opportunity to Consider
In the four months following the government’s agreement on the IRA, Investors.com reports…
- Enphase Energy (ENPH) stock is up 37%…
- Shoals Technology (SHLS) has climbed 46%…
- Array Technologies (ARRY) increased by 147%…
- First Solar (FSLR) stock has DOUBLED!20
The above statements were made at the time the IRA was originally agreed to and the performance of these stocks is provided for reference only and is not indicative of SolarBank’s stock performance.
Investor’s Business Daily says, “Solar stocks have a bright outlook, thanks to new law”.21
And they’re not alone thinking the solar market is attractive…
Investment banks like Goldman Sachs and Bank of America have outlined the potential that solar companies have.
“Bank of America believes this solar stock [First Solar] — already up more than 60% this year — has more room to run” 22
“Goldman Sachs Sees Potential for Another 50% Rally in Solar Stocks…” 23
Meanwhile, Michelle Davis, principal analyst at Wood Mackenzie, says, “this is the first time the industry has a 10-year certainty.” 24
Consider doing your own research into the business and operations of SolarBank (CSE:SUNN, OTCQX:SUUNF) and consult with your registered investment adviser on the suitability of a potential investment in SolarBank.
Top Reasons to Consider SolarBank Corporation:
- Renewable energy is one solution to America’s increased energy costs. SolarBank Corporation is position to help solve America’s increased energy cost, building community solar gardens and helping corporations meet their clean energy goals. Solar is one of the few major energy sources that’s actually declined in cost (85% since 2010), and is now cheaper than gas power (by 33%) – making it the smart, cost-effective solution to higher utility bills.
- A Future Market Projected To Hit $607 Billion. The solar energy market is expected to more than triple its current size by 2032 and could exceed $607 billion in the next eight years. SolarBank Corporation is aiming to capture a share of this market.
- The Inflation Reduction Act is supporting the industry. America has made its largest federal investment in clean energy… ever! The Government has set aside $369 billion for clean energy. The individual, corporate, and state & local government incentives have never been greater to invest in solar.
- Corporate America is going green. Corporate demand for solar has increased! Pressure is mounting for Corporate America to “go green”, and many companies have made commitments to be net-zero in the coming years.
However, you should be aware that there are risks to the business of SolarBank Corporation (CSE:SUNN, OTCQX:SUUNF):
- 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.
With the goal of becoming carbon neutral being part of a global initiative you could expect SolarBank to stay in the news for years to come.
That means you should consider calling your registered broker or advisor and showing him or her this report. Then discuss the new opportunity in solar and, in particular, with SolarBank Corporation (CSE:SUNN, OTCQX:SUUNF).
1.$20,699 million Q1 and Q2 2024 vs. $7,556 million Q1 and Q2 2023, and $7,449 Q3 and Q4 2023, https://s201.q4cdn.com/141608511/files/doc_financials/2024/Q2FY24/Rev_by_Mkt_Qtrly_Trend_Q224.pdf
3.Dec 30, 2022 of $359.5 Billion vs. $1.217 Trillion August 30, 2023, https://ycharts.com/companies/NVDA/market_cap
5.March 2, 2022 of CAD$50.45 million vs. August 30, 2023 of CAD$206.63M, https://ycharts.com/companies/SUNN.CX/market_cap
8.https://www.cnbc.com/2021/04/26/white-house-pushing-for-80percent-clean-us-power-grid-by-2030.html 9.https://www.npr.org/2023/02/02/1148370220/biden-renewable-energy-goals 10.https://www.npr.org/2023/02/02/1148370220/biden-renewable-energy-goals 11.https://renews.biz/82349/solar-demand-set-to-soar-in-2023/ 12.https://medium.com/@googworkersac/ruth-porat-497bbb841b52 13.https://medium.com/@googworkersac/ruth-porat-497bbb841b52 14.https://www.protocol.com/newsletters/climate/apple-supply-chain-clean-energy?rebelltitem=1#rebelltitem1 15.https://www.environmentalleader.com/2022/05/google-has-invested-3-5-billion-in-renewable-energy-projects-worldwide/#:~:text=Indeed%2C%20power%20purchase%20agreements%2C%20or,That’s%20a%20%243.5%20billion%20investment 16.https://www.aboutamazon.com/news/sustainability/amazon-expands-its-renewable-energy-projects-with-firsts-in-brazil-india-and-poland 17.https://www.aboutamazon.com/news/sustainability/amazon-extends-position-as-worlds-largest-corporate-buyer-of-renewable-energy 18.https://corporate.exxonmobil.com/news/newsroom/news-releases/2021/1109_why-we-are-investing-15-billion-in-a-lower-carbon-future 19.https://www.energy.gov/communitysolar/states-collaborative 20.https://www.investors.com/news/technology/solar-stocks-find-sure-footing/?src=A00220 21.https://www.investors.com/news/technology/solar-stocks-find-sure-footing/?src=A00220
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Certain statements in this communication are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Forward-looking statements in this communication include the potential growth of the business, revenue and market capitalization of SolarBank Corporation (the “Issuer”) as a result of a recent agreement, and the ongoing relationship, with Honeywell International and recent United States government initiatives in respect of clean energy; that the recent initiatives by the United States government will provide significant available funding and opportunities for clean energy companies, including the Issuer; that government initiatives and funding available for clean energy infrastructure will benefit the Issuer’s business and growth prospects; that investment in renewable energy technologies by other large well-known companies will continue in the future and will benefit the Issuer’s business and prospects; expectations regarding industry trends and overall market growth; the Issuer’s growth strategies; the expected energy production from the Issuer’s solar power projects; the targeted and expected reduction of carbon emissions; the receipt of incentives for solar and other green energy projects; the expected value of the agreements and ongoing relationship with Honeywell; the retention of an operations and maintenance contracts for the Issuer’s projects; the size of the Issuer’s development pipeline; and statements regarding the future business plans of the Issuer. You should review the forward looking disclaimer provided by the Issuer regarding the Issuer’s forward looking information, which can be found in the Issuer’s press releases and other disclosure documents which are filed under the Issuer’s profile on Sedar+ at www.sedarplus.ca.
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