Toronto, Ontario–(Newsfile Corp. – July 19, 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%.
About UGE
UGE develops, owns, and operates commercial and community solar and battery storage projects. Our distributed energy solutions deliver cheaper, cleaner energy to businesses and consumers with no upfront cost. With over 500MW of global experience, we work daily to power a more sustainable world. Visit us at www.ugei.com. For more information, contact UGE:
Nick Blitterswyk – [email protected] or +1 917 720 5685.
About Ampion
Ampion provides turnkey subscription and revenue management solutions for renewable energy developers nationwide, simplifying the complex world of distributed generation. From prospect to payment, we maximize investor returns in a holistic way, optimizing revenue with a team and customer management platform purpose-built for community distributed generation. We make our clients’ projects more predictable and more profitable, with better data insights, happier subscribers, and less risk. Learn more at ampion.net.
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Forward-Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of the Company. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Forward looking statements include, but are not limited to, the anticipated use of proceeds, and the listing of the Green Debentures on the TSX Venture Exchange. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
