This news is classified in: Sustainable Energy Solar
Jul 20, 2023
UGE International Ltd. (TSXV: UGE) (OTCQB: UGEIF) (the “Company” or “UGE”), a leader in commercial and community solar, announces that it has reached the ‘Notice to Proceed’ (NTP) milestone for a 1.4-megawatt rooftop community solar project in New York City. The Notice to Proceed milestone indicates that financing for the project has closed, and all necessary permits and interconnection approvals for the project are in place.
The building where the project will be sited will serve as the anchor energy off-taker for the solar project, offsetting both the electricity costs and carbon footprint of the building’s operation. More details about this high-profile development will be released later in the year. The remaining energy generated by the solar project will be reserved for residents and businesses in low- to moderate-income (LMI) communities, also providing these energy users with reductions in electricity costs. Each year, the project will offset roughly 1,700 metric tons of CO2 each year – the equivalent of what would be generated by burning 200,000 gallons of gasoline.
Once operational the project is estimated to produce an average of $286,000 in annual revenue, with a total program lifetime of at least 25 years. The Company currently expects average recurring revenue to carry gross margins at or around 85%. In addition, UGE will receive a grant through New York State Energy Research and Development Authority (NYSERDA)’s Clean Energy Communities program, which is designed to help incentivize, among other clean energy priorities, the development of community solar programs and specifically those which serve LMI communities. UGE’s grant is expected to total USD $1.7 million.
Ampion is handling subscriber acquisition and ongoing billing and revenue management for the project.
“Ampion’s mission is to spread renewable energy everywhere, for everyone,” said Nate Owen, CEO of Ampion. “We are looking forward to bringing community solar subscriptions and savings to New York residents in need. Without community solar, most New York residents would be unable to support solar energy. Ampion is proud to partner with UGE on this rooftop project to bring clean energy to the New York City community.”
With this project, UGE has reached NTP on 14.6MW of projects and commercial operation on 1.4MW of projects so far this year. Construction on the 1.4MW New York City solar project is set to begin this fall.
UGE Closes Project Finance Facility
On July 18th, the Company closed a customary construction-to-term project debt facility for USD $6,430,000 to finance this and 1.3MW of other projects in New York’s Con Edison utility territory. The facility carries an interest rate of 5.84%.
