EXCLUSIVE: SolarBank CEO Comments On Tariffs Impact, Unveils 4.584 MW Solar Project In New York

SolarBank Corporation (NASDAQ:SUUN) announced the Forest Hill Rd project on Wednesday. This 4.584 MW DC ground-mount solar project in upstate New York is expected to power 540 homes.

With the site lease secured and the interconnection study underway, the project strengthens SolarBank's development pipeline, which now exceeds one gigawatt, and reinforces its commitment to community solar.

The project qualifies for VDER compensation under NY Public Utility Commission case 15-E-0751, with an estimated year-one rate of $0.0971/kWh. The VDER rate is paid to the project owner for energy supplied to the grid.

If the project's interconnection study is successful, SolarBank will proceed with the permitting process and secure financing for construction. The project is expected to qualify for incentives under the NY-Sun Program, targeting up to $0.345/W DC, which will provide one-time financial support.

Upon completion, the project will operate as a community solar initiative, where solar panels connect to the local power grid. The clean energy generated will be fed into the grid, allowing renters and homeowners to save on electricity bills.

By subscribing, homeowners will receive monthly credits for their share of the solar energy produced, enjoying the benefits of solar without the need to install panels on their property.

Dr. Richard Lu, CEO of SolarBank, commented, "We continue to execute on our development pipeline of community solar projects. I also want to comment on the recent announcement of increased tariffs on Southeast Asian solar cells and SolarBank's plans to manage its supply chain. SolarBank has been importing solar panels from Malaysia, which are seeing an increase in tariff levels to 32.49% based on the manufacturer that supplies SolarBank. We will manage these cost increases through agreements with the manufacturer to share the cost of the tariff and through price adjustments on projects developed for third parties. Overall, even with the tariffs, SolarBank's projects will still generate competitive returns."

"SolarBank has also been exploring sourcing solar panels from regions not subject to tariffs, such as the Middle East and North America, where domestically assembled panels are becoming cost-competitive with those imported from Southeast Asia. The company also has significant development opportunities in Canada, where solar panels face no tariffs. Dr. Lu added, "Finally, I expect that electricity costs will increase in response to these tariffs, which will further mitigate the financial impact on projects. Overall, SolarBank is well-positioned to manage this risk."

Price Action: At the last check on Wednesday, SUUN shares were trading higher by 15.89% at $2.48 premarket.