Toronto, Ontario–(Newsfile Corp. – April 27, 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 second ground-mount solar project in Oakland, Maryland, the first of which was announced last month. 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 new 2.7-megawatt community solar project will be built adjacent to a family farm, on a piece of land unsuitable for farming due to its history as a limestone mine. By hosting the project, the family will earn long-term lease revenue on a piece of their property that would otherwise lay fallow. The project will generate enough clean energy to power more than 650 homes, while offsetting roughly 3,500 metric tons of CO2 emissions each year.
Subscribers to the Oakland community solar project will save a minimum of 10% on their electricity bills. As electricity rates continue to rise across the country, these savings become increasingly meaningful for Americans looking for ways to save money in today’s inflationary environment.
The Oakland community solar project will join UGE’s Low-to-Moderate Income (LMI) program, meaning that at least 30% of the energy generated by the project will be reserved for LMI households. Strengthening renewable energy equity is one of UGE’s guiding goals; the Company’s stated target is for more than 25% of the off-take from its operational portfolio to serve LMI households by 2026.
Subscription to the project will be managed by Common Energy. “We are proud to partner with UGE to enable more clean energy in Maryland,” said Richard Keiser, Common Energy’s founder and CEO. “We are particularly pleased that these projects will create meaningful savings for low income families in the community.”
Anticipating the launch of Maryland’s new community solar program, which was passed by the General Assembly last week, UGE has more than 13MW of projects under development in the state. The new program, a permanent replacement for the state’s pilot community solar program, is designed to be less restrictive for developers and more accessible for all Marylanders, with a requirement that all projects dedicate 40% of their solar generation to LMI subscribers.
Once operational the project is estimated to produce an average of $460,000 in annual revenue, with a total program life of 20 years. The Company currently expects average recurring revenue to carry gross margins at or around 85%. With this project, UGE has reached NTP on 12.7MW of projects and commercial operation on 1.4MW of projects so far this year. Construction on the Oakland project is set to begin this spring.
Grant of Performance Share Units to Officers
On April 19, 2023, the Company’s Board of Directors granted a total of 441,000 Performance Share Units (“PSUs”) to the Officers of the Company. These PSUs vest no earlier than April 19, 2024 and shares in the Company are awarded on the basis of meeting certain performance metrics associated with fiscal years 2023, 2024 and 2025. Performance metrics have been established such that the number of shares awarded can range from 0 to 661,500.
About UGE
UGE develops, owns, and operates commercial and community solar projects in the US and strategic markets abroad. 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.
About Common Energy:
Common Energy is a leading community solar provider that services over 250MW of projects across the country. Common Energy’s programs enable homeowners, renters, and businesses to support clean energy, lower emission in their communities and save money on their electricity for free, with their existing utility account. Common Energy currently serves households in Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Rhode Island, and Oregon. Residents of these states can enroll in a local community solar project for free at www.commonenergy.us Corporations interested in partnering with Common Energy can email [email protected].
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.
