Honeywell International Is Enlisting SolarBank For A $41 Million Renewable Energy Project In Upstate New York

Disseminated on behalf of SolarBank Corporation.

In the past ten years, the solar market in the United States has experienced notable growth, growing by 42% each year. This trend seems to be showing no signs of slowing down, as projections indicate an anticipated further increase of 41% within this year and Bloomberg Intelligence is reported as having predicted that solar will be the fastest-growing sub-segment in the energy sector in 2023. This growth has made the role of companies like SolarBank SUUNF SUNN crucial in the expansion of this critical industry.

Honeywell International HON has acquired three proposed 21 MW DC ground-mount solar power projects in upstate New York from SolarBank, and entered into an engineering, procurement and construction (EPC) agreement with SolarBank, for a total transaction value of $41 million. The projects will be developed as three individual 7 MW DC solar power projects, known as SB-1, SB-2 and SB-3. The completed projects will then sell credits to subscribers under the community solar model, meaning that clean energy from the site feeds into the local power grid, and dozens or even hundreds of renters and homeowners can save money through subscriptions as they access the benefits of solar without installing panels on their homes.

SolarBank will continue to build the projects for Honeywell to commercial operation via an EPC agreement, with SolarBank acting as EPC Contractor. Once operational, the projects will be eligible to participate in the New York State Energy Research and Development Authority (NYSERDA) NY-Sun Program to receive incentives from the state. Additionally, SolarBank expects to retain an operations and maintenance contract for the projects following construction.

Honeywell had previously provided SolarBank with funding for the deposits and advance payments required for the development of the projects. These advances will be offset against the payment due from Honeywell to SolarBank under the definitive agreements for the projects. The completed projects are expected to provide clean energy to the region and reduce carbon emissions while generating savings for renters and homeowners who subscribe to the community solar project.

This is not the first time Honeywell has invested confidence in SolarBank’s vision. SolarBank recently made headlines for reaching commercial operation on a solar project in New York in collaboration with Honeywell International. This project involved the construction of a behind-the-key solar power plant to support Honeywell water treatment systems. The solar plant has a capacity of 683.55 kWdc and is expected to produce over 753,000 kWh of clean, renewable energy in its first year of operation.

“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,” shared Dr. Richard Lu, Chief Executive Officer at SolarBank. “The construction of these Projects helps Honeywell achieve its remediation goals and support the transition away from fossil fuels.”

While governmental support is key to decreased reliance on fossil fuels, large companies investing in the sector are more crucial than ever. As more and more corporations invest in renewable energy, the trickle-down effect will become more apparent, and Honeywell’s investment and partnership with Solarbank is good news for the sustainability movement.

This article contains forward-looking information. Please refer to https://solarbankcorp.com/disclaimer/ for the assumptions and risks associated with such forward-looking information.

Featured photo by Moritz Kindler on Unsplash.
This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.