SolarBank's Fiscal First Quarter Revenue Jumps 40% Year-Over-Year On The Back Of Rising Demand For Solar

Disseminated on behalf of SolarBank Corporation.

SolarBank Corporation SUUNF SUNN GY, the Canadian renewable and clean energy company, reported a 40% rise in interim first-quarter 2024 revenue, benefiting from demand for solar power and the completion of several key projects. For the fiscal first quarter, SolarBank reported revenue of $7.7 million and net income of $2 million, up 800% year-over-year. 

Many factors are behind the rise in SolarBank’s earnings in 2023. Across the globe governments, companies and individuals are demanding cleaner energy sources, and that’s expected to continue for years to come. Solar and energy battery storage costs have fallen 85% in the past decade making it cheaper than coal and other fossil fuels in many instances. As a result, the North American solar PV market is projected to grow at a CAGR of 21.7% through 2027, hitting $120.74 billion, according to SolarBank. That’s up from $25.02 billion in 2019. 

SolarBank’s Unique Approach 

That plays into SolarBank’s focus. The company is focused on grid-connected solar photovoltaic electricity generation plants and provides capabilities across the entire value chain including site origination, development, financing, EPC, O&M and asset management. SolarBank’s customers include commercial and industrial corporations, institutions, community solar subscribers, municipalities and electric utilities.

SolarBank has gained recognition for its unique approach to solar energy and its partnerships with industry giants like Honeywell International Inc. HON. In September, Honeywell acquired 21 MW of community solar sites in Upstate New York from SolarBank and entered into an EPC agreement to build the sites, a transaction valued at $41 million. SolarBank currently operates more than 100 solar plants with a total capacity of over 60 megawatts. 

Community Projects The Next Big Thing?

SolarBank also invests in solar gardens, smaller projects that provide energy to communities. This has the potential to be a big business for the company. As of the end of this year, SolarBank has over 4,000 community solar subscribers in New York. These projects consist of a group of solar panels that have access to the local electricity grid. Once it's turned on and generating electricity the clean energy is fed into the local power grid. Dozens or hundreds of renters and homeowners can save money by using electricity generated from the solar project. Homeowners and renters earn credits on their electricity bill each month from the portion generated by solar. SolarBank sees itself as a trailblazer in what it expects to be a growing market. 

Earlier this month SolarBank further cemented its position in this area, acquiring 100% interest in two community solar projects in New York. SolarBank previously owned 67% interest in the projects and acquired the remaining 33% from a minority partner for $70,000 in cash. 

Expanding Its Reach 

The S1 Project is a ground-mount solar power project located at a municipally-owned utility campus in the village of Union Springs, New York. The solar plant will sell electricity to the municipality via remote net metering. The system has an installed capacity of 389.7kW DC and is expected to generate an estimated 578,000 kWh of clean, renewable energy in year one, said SolarBank. 

The VC1 Project is also a ground-mount solar power project located at a municipally-owned utility campus in the village of Cazenovia, New York. SolarBank said the system has an installed capacity of 297.9kW DC and is expected to generate an estimated 387,000 kWh of clean, renewable energy for the town in year one.

“SolarBank is steadily increasing the size of its portfolio of owned and operated solar power projects,” said Dr. Richard Lu, Chief Executive Officer at SolarBank when announcing the deal. “These two projects will generate nearly 1 MW of clean, renewable energy in their first year.”

Solar is taking off as the cost comes down and the need for cleaner energy grows. SolarBank seems to be proving itself to be a beneficiary in this transition, as was evident in its first quarter results and its reaffirmation of fiscal year 2024 revenue targets. 

Featured photo by American Public Power Association on Unsplash.

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