SolarBank Corporation (NASDAQ: SUUN) is progressing with the development of two community solar projects in Skaneateles, New York. Installed on repurposed industrial sites, these projects represent a combined capacity of 14.4 MW in direct current. Recently, they passed a crucial technical milestone by obtaining a favorable grid connection review following the Coordinated Electric System Interconnection Review (CESIR).
Technical validation and next steps
The CESIR review assesses the impact of a project on the electrical grid and determines the necessary adjustments before connection. With this approval secured, SolarBank can now move forward with the permitting phase, a process already underway. The projects are also eligible for financial incentives under the New York State Energy Research and Development Authority (NYSERDA) NY-Sun program, which could enhance their profitability.
Business model and operation
Once completed, these projects will operate under the community solar model. This concept allows subscribers, whether renters or homeowners, to benefit from reduced electricity bills without requiring individual solar panel installations. The generated electricity is fed into the grid, creating credits on participants’ electricity bills, enabling them to pay lower costs compared to standard utility rates.
Risks and uncertainties
Several factors will determine the realization of these projects. Securing final permits, establishing subscription contracts for the generated energy, and obtaining third-party financing remain crucial steps. Additionally, changes in renewable energy support policies could impact the financial viability of these projects. SolarBank is closely monitoring regulatory and financial developments to ensure the best possible conditions for its operations.
