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SolarBank’s $41m sale to Honeywell: a stepping stone in expanding community solar sites in upstate New York

Community solar projects are becoming increasingly popular as they provide an opportunity for a wider range of people to benefit from energy without having to install panels on their property.

Image courtesy SolarBank
Image courtesy SolarBank

Opinions expressed by Digital Journal contributors are their own.

Disseminated on behalf of SolarBank Corporation.

SolarBank’s (CSE: SUNN OTC: SUUNF) recent sale of 21MW ground mount solar power projects, to Honeywell International for $41 million marks a milestone in SolarBank’s role in the renewable energy landscape of the United States. This deal, along with an engineering, procurement and construction (EPC) agreement, strengthens the collaboration between SolarBank Corporation and Honeywell International. 

These projects, known as SB 13 1 SB 13 2 and SB 14 have a feature – they are designed as community solar sites. Community solar projects are becoming increasingly popular as they provide an opportunity for a wider range of people to benefit from energy without having to install panels on their property. The solar panels will generate electricity that will be fed into the power grid. Participants in these projects can earn credits on their bills enabling both homeowners and renters in the community to save money and enjoy the advantages of clean renewable energy.

Furthermore these projects meet the eligibility requirements for participation in the NY Sun Program.

The projects also have the potential to benefit from the NY Sun Program by the New York State Energy Research and Development Authority (NYSERDA) which offers incentives, for power initiatives. If deemed eligible this program could provide support to these already impressive endeavors making them even more attractive to prospective participants.

Below are photos of some of the existing projects that SolarBank has constructed:

Image courtesy SolarBank

The Collaboration between SolarBank and Honeywell

Dr. Richard Lu, Chief Executive Officer at SolarBank expressed his enthusiasm for the growing partnership between Honeywell and SolarBank emphasizing its implications for energy. Dr. Lu stated, “We are excited to collaborate and contribute towards transitioning from fuels while minimizing strain on the power grid and reducing greenhouse gas emissions.”

SolarBank, the originator of the New York sites will serve as Honeywells EPC Contractor overseeing engineering, procurement and construction processes for these projects. Additionally they are expected to retain an operations and maintenance contract after completion. This agreement solidifies SolarBanks long term involvement in these projects and ensures a revenue stream beyond the initial sale.

The Funding Agreement

Prior to this sale Honeywell had already established a funding arrangement, with SolarBank to support project development efforts. Approximately $2.668 million was allocated for deposits and advance payments to vendors.

These advancements will be balanced against the amount of money that SolarBank is owed by Honeywell based on the agreements for the projects.

Possible Risks

As with any development project there are risks involved. The success of these projects relies on securing third party financing. The overall climate surrounding power initiatives. Government policies could potentially change, impacting the feasibility of energy projects. It’s important to note these factors as they have the potential to affect project profitability or even completion.

About the Companies

SolarBank Corporation is a player in clean energy focusing primarily on distributed and community solar projects in Canada and the United States. With a development pipeline of over one gigawatt and than 70 megawatts of already developed renewable energy projects SolarBank is strategically positioned to take advantage of the increasing demand for sustainable energy solutions.

On the other hand Honeywell International is a global technology company with operations spanning aerospace products to building and industrial control technologies. Their acquisition of these projects demonstrates their dedication to creating a safer and more sustainable world.

The Path Forward

This transaction exemplifies how community solar projects are becoming increasingly important and viable, within the framework of energy. As these $41 million agreements unfold, all eyes will be focused on how these companies can transform the promise of sustainable energy into a tangible reality, for communities in upstate New York.

For information please reach out to Tracy Zheng at SolarBank Corporation via email at tracy.zheng@solarbankcorp.com. Call 416.494.9559.

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

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Written By

Jon Stojan is a professional writer based in Wisconsin. He guides editorial teams consisting of writers across the US to help them become more skilled and diverse writers. In his free time he enjoys spending time with his wife and children.

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