Solar Energy Initiatives, Inc. announced this morning that they have inked a Letter of Intent (LOI) to complete a solar PV PPA project with a Delaware Charter School. This project is expected to generate approximately $1.2 million in revenue for the Company with the anticipated completion date slated for the fall of 2011.
Solar Energy Initiatives will serve as the developer for the project, which is designed to reduce carbon dioxide emissions by 500 tons per year. The system is planned for up to 300 kilowatts of roof-mounted solar panels and will require over 1,300 solar panels to complete. As developer, Solar Energy Initiatives will oversee the construction process and provide all of the solar equipment and balance of system to the commercial site. Much like other projects developed by the Company, revenues should be generated not only from the sales, service and construction of the system, but also from the management and sale of the solar electricity generated. In order to launch the new system, the Company intends to partner with both a major funding source and a recognized local solar installer.
Six days ago, Solar Energy Initiatives released its financial results for the three months ended October 31, 2010, which was highlighted by a significant reduction in monthly burn rate. While gross profits from operations for the three months in 2010 totaled $140,404 as compared to $261,534 for the same period in 2009, the Company announced that a sizeable reduction in expenditures will be realized in 2011 as it has reduced headcount, consulting agreements, rented space, and other items resulting in savings of over $63,000 per month.
Additionally, the quarter featured signed Power Purchase Agreements (PPAs) with the Tennessee Valley Authority (“TVA”) to build 2.0 MWs of projects with municipal and institutional clients. Under the completed agreements, TVA has agreed to purchase all of the power the systems produce, as well as the associated environmental benefits. Solar Energy Initiatives, Inc. will lead the project development effort, including system design, installation and operation of the proposed 2.0 megawatts of photovoltaic systems on the sites.
The Company is also moving forward with milestone developments with its subsidiary, Solar EOS Group, which is dedicated to the education and continuous improvement of solar energy trade professionals. Quarter highlights for this component included it being approved by the Florida Department of Business and Professional Regulation to provide Continuing Education for Electrical Contractors and the Company receiving approval to open its solar technical training school in South Carolina.
As Solar Energy Initiatives continues to both refine and expand its business strategies, the Ponte Vedra Beach, Florida-based organization may be a company that gains the attention of traders on a larger scale in 2011. With only 41 million shares outstanding, SNRY is trading near 52-week lows in the area of 4 cents whereas it was nearly trading at 20 cents in October. It can be anticipated that investors will be keeping their eyes open for more deals of this caliber in the coming months.
More information on Solar Energy Initiatives, Inc., its projects and business strategies can be found on the Company’s website at www.solarenergy.com