Mr. Myke Clark reports

SOLAR ALLIANCE PROVIDES 2024 CORPORATE UPDATE

Solar Alliance Energy Inc. is offering a corporate and operational update as the company targets another year of strong growth in the U.S. commercial solar market.

"Two thousand twenty-three was a transformative year for Solar Alliance as our sales and operations team hit their full stride, delivering our first profitable quarter in the company's commercial solar history in Q3," said chief executive officer Myke Clark. "We remain committed to growing the company with an emphasis on profitability and we believe our business plan and contracted backlog support this strategy."

"We have focused on larger, higher-margin commercial solar projects, combined with diligent cost control, in order to drive responsible growth," said U.S. general manager Jon Hamilton. "The second half of 2023 was extremely busy as we built out our backlog of contracted projects and that pace is continuing into 2024."

Key corporate highlights and objectives

Conversion of contracted project backlog to revenue

The company experienced a productive fourth quarter in 2023 as the operations and installation teams executed on several larger projects. Significant progress was made on the following projects, which are all expected to be complete in the first quarter of 2024:

• A 565-kilowatt commercial solar project for a manufacturing client in Tennessee announced on May 31, 2023;

• An 872 kW solar project in Tennessee announced on Feb. 13, 2023, with a $1.8-million capital cost;

• Two projects, 250 kW and 299 kW, for a Tennessee client announced on July 10, 2023. The two projects, with a capital cost of $1.58-million, began construction in the fourth quarter of 2023;

• Multiple smaller commercial solar projects in the 30 kW to 100 kW range were completed in the fourth quarter of 2023 and several other commenced construction.

Sales targets and project sizes increased. Solar Alliance has systematically, and responsibly, increased the size and number of commercial solar projects it has designed and installed. The average system size being designed and installed by Solar Alliance has grown each of the last three years and the company expects continued growth in system sizes in 2024 while maintaining its focus on profitability.

Year      Commercial    Average system 
           projects       size (kW)

2021          6               25           
2022          7              258           
2023         22              272           
 

Project sizes in 2023 range from small commercial projects in the 30 kW range, up to the company's largest project sold in 2023 of 872 kW. The Solar Alliance sales team is currently focused on multiple potential opportunities in the 500 kW to the multimegawatt range as the company's capabilities expand.

Southeast U.S. market focus

Based out the company's Knoxville, Tenn., office, Solar Alliance has created a centre of excellence that can leverage sales and operations partners to extend its reach. This model, which includes outsourcing certain aspects of project installation, allows for improved pace, efficiency, stronger margins and lower overhead costs. Critically, the key components of sales, design and engineering, and project management are maintained in-house to ensure quality control. In the commercial solar sector in the U.S. Southeast, Solar Alliance continues to build strong brand awareness. The addressable market in the region, combined with demonstrated growth opportunities, has convinced the company to remain focused on the U.S. Southeast as demand for commercial solar intensifies. In addition, Solar Alliance remains strategically positioned to benefit from interest in Inflation Reduction Act tax credits and other federal incentives. These credits not only contribute to the company's profitability target but also increase the economic benefits for business that choose to go solar.

Corporate growth opportunities

Solar Alliance is targeting several potential avenues for growth in 2024 in addition to the company's strong organic growth. The company is exploring accretive and strategically opportunistic North American acquisition opportunities, with a bias toward the U.S. market. Solar Alliance is focused on the following potential strategic opportunities:

• Merger and acquisition opportunities that scale the company's current operations. This would include companies with a similar business model as Solar Alliance;

• M&A opportunities that provides sector diversification, including solar project developers;

• Joint venture relationship with entities seeking entry into the U.S. commercial solar market.

Solar Alliance recognizes the benefit of achieving greater scale and is committed to seeking out opportunities that provide strategic value for shareholders. Capital markets volatility in 2023 limited M&A activity in the small cap sector. Solar Alliance focused on achieving profitability and positioning the company in the event market conditions improve. The company is optimistic 2024 will provide more favourable market conditions to execute one or more of the company's corporate growth goals.

"Solar Alliance is well positioned to execute on the next stage in its growth strategy. We have built a lean, flexible and technically proficient team that fills a need in the commercial solar industry. Our strategic opportunities, combined with a large addressable market and the compelling benefits for business customers, set the stage for an exciting year ahead," concluded Mr. Clark.

About Solar Alliance Energy Inc.

Solar Alliance is an energy solutions provider focused on the commercial, utility and community solar sectors. Our experienced team of solar professionals reduces or eliminates customers' vulnerability to rising energy costs, offers an environmentally friendly source of electricity generation, and provides affordable, turnkey clean energy solutions. Solar Alliance's strategy is to build, own and operate its own solar assets while also generating stable revenue through the sale and installation of solar projects to commercial and utility customers. The company currently owns two operating solar projects in New York and is actively pursuing opportunities to grow its ownership pipeline. The technical and operational synergies from this combined business model support sustained growth across the solar project value chain from design, engineering, installation, ownership and operations/maintenance.

We seek Safe Harbor.