SolarBank Corp. (NASDAQ: SUUN) (CSE: SUNN) (NEO: SUNN) (FSE: GY2) Secures $25.8M for Battery Storage Projects as Demand Surges
- The $25.8 million in financing from the Royal Bank of Canada will be used for two Ontario-based battery energy storage system projects.
- The projects mark SolarBank’s first foray into energy storage, a market expected to reach $31.2 billion by 2029.
- Contracts for the projects include a 22-year term with fixed capacity payments significantly above the market average.
- The projects will benefit from Canada’s Clean Technology Investment Tax Credit, covering up to 30% of eligible capital costs.
- Battery storage is becoming essential for grid resilience, cost management and meeting skyrocketing energy demand.
Disseminated on behalf of SolarBank Corporation
SolarBank (NASDAQ: SUUN) (CSE: SUNN) (NEO: SUNN) (FSE: GY2), a premier developer and owner of renewable and clean energy projects, specializing in distributed and community solar initiatives throughout Canada and the U.S., is expanding into the fast-growing battery energy storage market. The company has closed a $25.8 million non-recourse loan with the Royal Bank of Canada to fund the construction, operation and maintenance of two 4.99 MW battery energy storage system (“BESS”) projects in Ontario, named SFF 06 and 903 (https://nnw.fm/18Bzz ).
Both projects were awarded 22-year contracts under Ontario’s Expedited Long-Term RFP (“E-LT1 RFP”) in July 2023. These contracts include fixed capacity payments of $1,221/MW per business day, well above the $876/MW average for similar projects.
Additionally, the projects qualify for Canada’s Clean Technology Investment Tax Credit, offering a 30% reimbursement of eligible capital costs. This incentive significantly boosts the economic viability of the projects while aligning with SolarBank’s sustainability goals.
These projects represent SolarBank’s initial entry into the battery storage sector, a move well-timed as global demand for energy storage surges. The market is projected to grow at a 16.3% annual rate, reaching $31.2 billion by 2029 (https://nnw.fm/uZmMK ).
Battery storage systems are becoming critical for addressing grid inefficiencies, aging infrastructure and surging energy demand. By storing energy for later use, BESS can mitigate grid failures during extreme weather, reduce costs during peak demand, and support renewable energy integration (https://nnw.fm/1yUfv ).
In regions like Texas, battery storage has already demonstrated its value. During high-demand days in 2024, battery storage infrastructure saved the state $750 million in energy costs, according to Aurora Energy Research. This success serves as a case study for other markets, including Canada, where SolarBank is poised to make an impact.
The need for energy storage is driven by unprecedented demand from sectors like AI and bitcoin mining. In Texas alone, data center expansion is projected to double grid capacity needs by 2030. As countries worldwide commit to scaling energy storage capacity sixfold by 2030, projects like SolarBank’s BESS systems in Ontario are essential to achieving these goals.
Noah Roberts of the American Clean Power Association emphasized that battery storage is not just a transition but a transformation. Its role in maintaining grid resilience and meeting climate targets makes it an indispensable part of the energy landscape.
SolarBank’s entry into the battery storage market is a natural extension of its renewable energy expertise, as it already has an impressive portfolio of renewable energy initiatives including more than 100 megawatts of developed capacity and a pipeline exceeding one gigawatt. These projects serve to emphasize the company’s leadership in the clean energy space and its commitment to sustainability and innovation as a key player in driving the renewable energy transition.
For more information, visit the company’s website at SolarBankCorp.com. This report contains forward looking information. Please refer to https://nnw.fm/18Bzz for additional details.
NOTE TO INVESTORS: The latest news and updates relating to SUUN are available in the company’s newsroom at https://nnw.fm/SUUN
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or republished: http://NNW.fm/Disclaimer
- The $25.8 million in financing from the Royal Bank of Canada will be used for two Ontario-based battery energy storage system projects.
- The projects mark SolarBank’s first foray into energy storage, a market expected to reach $31.2 billion by 2029.
- Contracts for the projects include a 22-year term with fixed capacity payments significantly above the market average.
- The projects will benefit from Canada’s Clean Technology Investment Tax Credit, covering up to 30% of eligible capital costs.
- Battery storage is becoming essential for grid resilience, cost management and meeting skyrocketing energy demand.
Disseminated on behalf of SolarBank Corporation
SolarBank (NASDAQ: SUUN) (CSE: SUNN) (NEO: SUNN) (FSE: GY2), a premier developer and owner of renewable and clean energy projects, specializing in distributed and community solar initiatives throughout Canada and the U.S., is expanding into the fast-growing battery energy storage market. The company has closed a $25.8 million non-recourse loan with the Royal Bank of Canada to fund the construction, operation and maintenance of two 4.99 MW battery energy storage system (“BESS”) projects in Ontario, named SFF 06 and 903 (https://nnw.fm/18Bzz ).
Both projects were awarded 22-year contracts under Ontario’s Expedited Long-Term RFP (“E-LT1 RFP”) in July 2023. These contracts include fixed capacity payments of $1,221/MW per business day, well above the $876/MW average for similar projects.
Additionally, the projects qualify for Canada’s Clean Technology Investment Tax Credit, offering a 30% reimbursement of eligible capital costs. This incentive significantly boosts the economic viability of the projects while aligning with SolarBank’s sustainability goals.
These projects represent SolarBank’s initial entry into the battery storage sector, a move well-timed as global demand for energy storage surges. The market is projected to grow at a 16.3% annual rate, reaching $31.2 billion by 2029 (https://nnw.fm/uZmMK ).
Battery storage systems are becoming critical for addressing grid inefficiencies, aging infrastructure and surging energy demand. By storing energy for later use, BESS can mitigate grid failures during extreme weather, reduce costs during peak demand, and support renewable energy integration (https://nnw.fm/1yUfv ).
In regions like Texas, battery storage has already demonstrated its value. During high-demand days in 2024, battery storage infrastructure saved the state $750 million in energy costs, according to Aurora Energy Research. This success serves as a case study for other markets, including Canada, where SolarBank is poised to make an impact.
The need for energy storage is driven by unprecedented demand from sectors like AI and bitcoin mining. In Texas alone, data center expansion is projected to double grid capacity needs by 2030. As countries worldwide commit to scaling energy storage capacity sixfold by 2030, projects like SolarBank’s BESS systems in Ontario are essential to achieving these goals.
Noah Roberts of the American Clean Power Association emphasized that battery storage is not just a transition but a transformation. Its role in maintaining grid resilience and meeting climate targets makes it an indispensable part of the energy landscape.
SolarBank’s entry into the battery storage market is a natural extension of its renewable energy expertise, as it already has an impressive portfolio of renewable energy initiatives including more than 100 megawatts of developed capacity and a pipeline exceeding one gigawatt. These projects serve to emphasize the company’s leadership in the clean energy space and its commitment to sustainability and innovation as a key player in driving the renewable energy transition.
For more information, visit the company’s website at SolarBankCorp.com. This report contains forward looking information. Please refer to https://nnw.fm/18Bzz for additional details.
NOTE TO INVESTORS: The latest news and updates relating to SUUN are available in the company’s newsroom at https://nnw.fm/SUUN
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or republished: http://NNW.fm/Disclaimer
