Solar Alliance Revenue Increases 55% to $7.5 Million in 2023

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The company continues to execute its strategy in the high-growth US solar industry

TORONTO and KNOXVILLE, Tenn., April 30, 2024 (GLOBE NEWSWIRE) — Solar Alliance Energy Inc. (“Solar Alliance” or the “Company”) (TSX-V: SOLR, OTC: SAENF)a leading provider of solar energy solutions focused on the commercial and utility solar sectors, announces that the Company has filed its audited financial results for the quarter and year ended December 31, 2023 profiled at www.sedarplus.ca.

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“Solar Alliance continued to successfully execute on our strategy as our team achieved a 55% year-over-year increase in revenue,” said CEO Myke Clark. “Solar Alliance continues to see strong demand for commercial solar projects and we continue to focus on larger, higher-margin commercial solar projects to support our growth. In addition to implementing larger projects, we are now also seeing strong demand for solar projects for small and medium-sized companies in rural communities. We reduced our costs and overheads in 2023 and believe we will see continued improvements in the bottom line as these cost reductions impact full-year 2024. We continue to build a stable, growing business that is well positioned to benefit from the current global shift toward renewable energy,” Clark concluded.

Key financial highlights for 2023

• Revenue increased 55% year over year to $7,473,937 as of December 31, 2023 (2022 – $4,825,984) as the Company continued to expand its commercial and utility solar business.
• Cost of sales is $6,399,169 (2022 – $4,371,698), resulting in gross profit of $1,074,768 (2022 – $454,286).
• Net cash flow from operating activities: $97,425 (2022 – Net cash flow from operating activities – $1,484,220)
• Cash balance of $702,988 (2022 – $650,061) as of December 31, 2023.
• A net loss of $1,811,861 (2022 – $2,746,914).
• The company recorded a one-time loss of $521,648 related to the sale of two solar projects in New York.
• Total cost of $3,037,881 (2022 – $4,283,008), a reduction of 29%.
• Salaries and benefits of $1,343,363 (2022 – $2,279,413), a reduction of 41%.
• Short-term loans and notes in the amount of $137,500 in 2023 (2022 – $1,556,984).

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Key business highlights and outlook

Dynamics in the focus of large projects. The company continues to target larger customers for third-party sales and installation of solar systems, particularly commercial and industrial customers. Solar Alliance’s strategy is to design, construct and install commercial solar systems up to several megawatts in size.

The growth of small and medium-sized projects is accelerating. A key component for small businesses seeking to reduce operating costs are United States Department of Agriculture (“USDA”) Rural Energy for America Program (“REAP”) grants and loans. Supported by funding from the U.S. Inflation Reduction Act, REAP promotes lower energy costs and resiliency while opening new revenue opportunities for rural small businesses and agribusinesses served by the USDA. Solar Alliance has committed sales resources to support increased demand through the REAP program and has signed several small and medium-sized projects as a result. These projects add to the sales funnel of larger projects that the company continues to pursue.

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Partner program started. In support of the Company’s organic growth strategy in the Southeastern United States, on September 12, 2023, the Company announced the launch of the Solar Alliance Partner Program (the “Partner Program”). The Partner Program provides independent sales organizations access to branded marketing materials as well as design, engineering and installation management services. In return, the subsidiaries bring commercial solar opportunities to the Solar Alliance. The partner program will initially focus on the Southeastern US market and has the potential to expand to additional regions in the US

BC Call for power. In British Columbia, Canada, utility BC Hydro officially launched the “Call for Power 2024” on April 3, 2024. The company has retained development rights, wind resource data and environmental data for a potential 77-megawatt legacy wind project in the province and will explore the tender and all opportunities to participate.

Mike Clark, CEO

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About Solar Alliance Energy Inc. (www.solaralliance.com)

Solar Alliance is an energy solutions provider focused on the commercial, utility and community solar sectors. Our experienced team of solar experts reduces or eliminates customers’ vulnerability to rising energy costs, provides an environmentally friendly source of power generation, and provides affordable, turnkey clean energy solutions. Solar Alliance’s strategy is to build, own and operate its own solar facilities while generating stable revenue through the sale and installation of solar projects to commercial and utility customers. The technical and operational synergies of this combined business model support sustainable growth across the entire solar project value chain, from planning, construction, installation, ownership to operations and maintenance.

Statements in this press release, other than purely historical information, including statements regarding the Company’s future plans and objectives or expected results, constitute forward-looking statements. The words “would”, “will”, “expected” and “estimated” or other similar ones Words and expressions are intended to identify forward-looking information. Forward-looking information in this press release includes, but is not limited to, the Company’s ability to scale, increase project margins, targeted profitability and the Company’s offering of a unique investment opportunity in the renewable energy space. Forward-looking information is subject to known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking information. These factors include, but are not limited to: uncertainties related to the ability to raise sufficient capital, changes in economic conditions or financial markets, litigation, legislative or other judicial, regulatory, legislative and political competitive developments, technological or operational difficulties, the ability to maintain of revenue growth, the ability to execute the Company’s strategies, the ability to complete the Company’s current and backlog of solar projects, the ability to increase the Company’s market share, the high-growth U.S. solar industry, the ability to convert the backlog of projects Impact on revenue, the expected construction and completion schedule of the Company’s solar projects, targeting of larger customers, the Company’s potential growth opportunities and the ability to implement key objectives in 2024. Consequently, actual results may differ materially from those described in the forward-looking statements.

“Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

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