SolarBank Corporation announced that it has completed mechanical construction on the 21 MW DC ground-mount solar power projects that are under development in upstate New York for Honeywell International in a USD 41 million transaction. The Projects are known as SB 13-1, SB 13-2 and SB-14. The next step is completion of final electrical work and acceptance testing.

SolarBank originated the sites in upstate New York that will be developed as three separate 7 MW DC solar power projects. In September 2023, the Company completed the sale of the Projects to Honeywell and an engineering, procurement, and construction agreement pursuant to which the Company will continue to build the Projects for Honeywell to commercial operation. The sale of the Projects and EPC agreement have a total value of approximately USD 41 million.

The Company also expects that it will retain an operations and maintenance contract for the Projects following the completion of construction. Once completed, the Projects will be operated as community solar projects. Community solar is a group of solar panels with access to the local electricity grid.

Once the panels are turned on and generating electricity, clean energy from the site feeds into the local power grid. Depending on the size and number of panels the project has, dozens or even hundreds of renters and homeowners can save money from the electricity that is generated by the project. By subscribing to a project, a homeowner earns credits on their electric bill every month from their portion of the solar that's generated by the project, accessing the benefits of solar without installing panels on their home.

The Projects are expected to be eligible for incentives under the New York State Energy Research and Development Authority (NYSERDA) NY-Sun Program. There are several risks associated with the development of the Projects. The development of any project is subject to the continued availability of third-party financing arrangements for the project owner and the risks associated with the construction of a solar power project.

In addition, governments may revise, reduce or eliminate incentives and policy support schemes for solar power, which could result in future projects no longer being economic. Please refer to "Forward-Looking Statements" for additional discussion of the assumptions and risk factors associated with the statements in this press release.