Mr. Myke Clark reports

SOLAR ALLIANCE REVENUE INCREASES 55% IN 2023 TO $7.5 MILLION

Solar Alliance Energy Inc. has filed its audited financial results for the quarter and year ended Dec. 31, 2023. The company's financial statements and related management discussion and analysis are available under the company's profile on SEDAR+.

"Solar Alliance continued to successfully execute on our strategy as our team delivered a 55-per-cent increase in revenue year over year," said chief executive officer Myke Clark. "Solar Alliance continues to see strong demand for commercial solar projects, and we remain focused on larger, higher-margin commercial solar projects to support our growth. In addition to executing on larger projects, we are now experiencing strong demand for solar projects for small and medium-sized businesses in rural communities. We reduced expenses and overhead during 2023, and we believe we will experience ongoing bottom-line improvements as those cost reductions have an impact on the full year for 2024. We continue to build a stable, growing company that is well positioned to take advantage of the current global shift to renewable energy," concluded Mr. Clark.

Key financial highlights for 2023:

• Revenue grew 55 per cent year over year to $7,473,937 (2022: $4,825,984) for the year ended Dec. 31, 2023, as the company continued to expand its commercial and utility solar business;
• Cost of sales of $6,399,169 (2022: $4,371,698) resulting in a gross profit of $1,074,768 (2022: $454,286);
• Net cash provided by operating activities was $97,425 (2022: net cash used by operating activities was $1,484,220);
• Cash balance of $702,988 as of Dec. 31, 2023 (2022: $650,061);
• A net loss of $1,811,861 (2022: $2,746,914);
• The company recorded a one-time loss of $521,648 related to the sale of two solar projects in New York;
• Total expenses of $3,037,881 (2022: $4,283,008), a 29-per-cent reduction;
• Salaries and benefits of $1,343,363 (2022: $2,279,413), a 41-per-cent reduction;
• Short-term loans and notes payable of $137,500 in 2023 (2022: $1,556,984).

Key business highlights and outlook

Large-project focus momentum: The company continues to target larger customers for third party solar system sales and installations, specifically for commercial and industrial customers. Solar Alliance's strategy is to design, engineer and install commercial solar systems ranging in size up to several megawatts.

Small and medium-sized project growth accelerates: A key component for small businesses wanting to reduce utility costs are Rural Energy for America Program (REAP) grants and loans from the U.S. Department of Agriculture (USDA). Supported by funding from the U.S. Inflation Reduction Act, REAP promotes lower energy costs and resilience while opening new income opportunities for the rural small businesses and agribusinesses the USDA serves. Solar Alliance has dedicated sales resources to supporting the increased demand created by the REAP and has signed several small and medium-sized projects as a result. These projects are in addition to the sales funnel of larger projects the company continues to pursue.

Affiliate program launched: In support of the company's organic growth strategy in the southeastern United States, the company announced the launch of the Solar Alliance affiliate program on Sept. 12, 2023. The affiliate program provides independent sales organizations with access to branded marketing materials, design, engineering and installation management services. In return, the affiliates bring commercial solar opportunities to Solar Alliance. The affiliate program is initially focused on the southeastern U.S. market and has the potential to be expanded to additional regions in the United States.

British Columbia call for power: In British Columbia, Canada, the utility BC Hydro formally launched the 2024 call for power on April 3, 2024. The company has maintained the development rights, wind resource data and environmental data for a potential 77-megawatt legacy wind project in the province and will be reviewing the RFP (request for proposal) and any opportunities to participate.

About Solar Alliance Energy Inc.

Solar Alliance is an energy solutions provider focused on the commercial, utility and community solar sectors. The company's 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 technical and operational synergies from this combined business model supports sustained growth across the solar project value chain from design, engineering, installation, ownership and operations/maintenance.

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