Solar Alliance Energy, Inc. Announces Q2 Earnings, through a challenging period for the solar renewables industry

(figures in Canadian dollars)

TORONTO and KNOXVILLE, Tenn., Aug. 29, 2025 (GLOBE NEWSWIRE) -- Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR, OTC: SAENF), a leading solar energy solutions provider focused on the commercial and utility solar sectors, announces it has filed its unaudited financial results for the three months ended June 30th, 2025. The Company’s Financial Statements and related Management’s Discussion and Analysis are available under the Company’s profile at www.sedarplus.ca.

“Solar Alliance’s main activity through Q2 2025 was the continued build-out of a large solar energy project for major repeat customer located in Kentucky.  Due to unusually severe weather in Kentucky, which included widespread flooding, power outages, and tornadoes throughout the state, and other technical issues, the project experienced delays in the quarter.   This contributed to a reduced level of activity and a decline in revenues to $1.685,144Millon, in H 1 2025 compared to $2,376,389, in H1 2024.” said CEO Brian Timmons.

In the recent short-term period, through the first half of 2025, the Company’s business development has been impacted by the uncertainties in relation to the US Administration’s renewables policy proposals. During this period there was no clarity in respect of the availability of the fiscal incentives, and no firm basis for board decision-making. This effectively put all corporate solar project investment decisions on hold. As the Administration policy decisions unfolded, however, the choices announced provided for a longer, more favourable transition period for commercial and industrial solar projects with respect to tax incentives than was previously feared.

Similarly, grant funded community and rural solar initiatives across the region have been impacted by funding policy uncertainty and have accordingly progressed very cautiously.

The net impact is that, during the first half of the year the Company experienced delayed decisions across the board - from commercial, community and rural clients and thereby reduced commercial activity.  The following financials reflect the above.

Key financial highlights for H1 and Q2, 2025

• Revenue for the first six months of 2025 of $1,685,144 compared to $2,376,369 in the comparative period in 2024.
• Net deficit for the first six months of 2025 $711,450 compared to a net income of $1,495 in the comparative period in 2024.
• Gross profit for the first six months of 2025 of $322,059 and gross margin of 19.1% compared to a gross profit of $853,695 and gross margin of 35% in the comparative period in 2024.
• Revenue for the three months ended June 30, 2025, was $849,535, (Q2, 2024 $711,532) ).
• Net loss for the three months ended June 30, 2025 of $234,880 (Q2, 2024 – net loss of $200,339).
• Cost of sales for the three months ended June 30, 2025 of $480,993 (Q2, 2024, $504,300) resulting in a gross profit of $368,542 and gross margin of 43.3% (Q2, 2023: gross profit of $207,232 and gross margin of 29.1% .

Highlights
Looking forward, however, the Company’s purposeful transition to larger commercial solar projects development efforts now includes assessment of specific regional requests for proposals for solar projects, where Solar Alliance has a competitive advantage arising from its installation experience, track record and regional brand awareness. Solar Alliance continues to see increased demand for commercial solar projects, and, while focused on larger, higher margin commercial solar projects, is also seeing rising demand for solar projects for small and medium-sized businesses in rural communities. Recent focus on AI energy requirements and the cost implications of increased electricity demand are adding renewed interest in onsite power generation, where solar and solar plus storage solutions are well suited. 

The Company is pursuing larger scale projects of a scale of up to 5MWs in generation capacity. The procurement of such contracts would be expected to have a material impact on the Company’s working capital and financial resources availability.

Also, while the Company continues to execute on existing projects, it is pursuing the upgrade of its business development capability, and in this regard is undertaking initiatives to significantly strengthen and resource up its marketing, business development and sales capability, so as to leverage the Company’s reputation and execution capability. This, it is expected, will enable the Company to generate substantially higher revenues, profitability and cashflows than has been achievable before.

Longer term, the fundamentals for growth in solar energy demand remain very compelling.

These include:

• Capital costs for solar installations have fallen by 84%¹ over the past 15 years, moving solar energy from being the most expensive to the lowest cost source of energy
  
  
• The speed at which solar generation can be constructed, relative to the available alternatives, such that in excess of 80%² of new generation capacity in 2024 was accounted for by solar and solar storage deployments;
  
  
• The prospect of substantially higher growth in electricity demand, over the next 5 to 10 years, from the proliferation of datacentres and AI and the consequent likely upward pressure on electricity prices.
  
  and

• The delays likely to arise in the coming onstream of alternative sources of power supply – viz natural gas pipelines are operating at significant capacity constraints³ and much evidence suggests that the nuclear alternative, also, will take some years to come onstream⁴;
  

These factors are motivating corporate clients in particular, (and community solar promoters also) to look at how they can mitigate the impact of energy price increases and enhance security of power supply. In this context, solar energy and storage systems are particularly suited for collocated, onsite energy production.

Longer Term Strategy

The board and management team is also intent on pursuing serious longer term initiatives to serve the needs of our marketplace after the ITC incentives are gone. In this regard the Company believes it is very strongly placed to address the energy challenges that the C&I and community solar energy providers will likely face in a new era when it is likely that increased demand and potentially much higher energy prices become increasingly evident. The Company is looking to position itself as a compelling, cost effective, microgrid energy solutions provider in the future and believes that the emerging energy industry will present massive opportunity for the Company’s know-how and experience.

Brian Timmons, CEO

For more information:

Investor Relations Brian Timmons, CEO 1.865 888 9925 btimmons@solaralliance.com

About Solar Alliance Energy Inc. (www.solaralliance.com)

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 ultimately build, own and operate our own solar assets while also generating stable revenue through the sale and installation of solar projects to commercial and utility community customers.

Statements in this news release, other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, constitute Forward-looking statements.

The words “would”, “will”, “expected” and “estimated” or other similar words and phrases are intended to identify forward-looking information. Forward-looking information in this news release includes, but is not limited to, statements with respect to the resumption of trading of the Company’s common shares. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include but are not limited to: the ability to complete the Company’s projects on schedule or at all, uncertainties related to the ability to raise sufficient capital; changes in economic conditions or financial markets; litigation, legislative or other judicial, regulatory, legislative and political competitive developments; technological or operational difficulties; the ability to maintain revenue growth; the ability to execute on the Company’s strategies; the ability to complete the Company’s current and backlog of solar projects; the ability to grow the Company’s market share; the high growth rate of the US solar industry; the ability to convert the backlog of projects into revenue; the expected timing of the construction and completion of the 1500 kW Kentucky solar projects; the targeting of larger customers; the ability to predict and counteract the effects, should they re-emerge, of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19, on the construction sector, capital market conditions, restriction on labour and international travel and supply chains; potential corporate growth opportunities and the ability to execute on the key objectives in 2025. Consequently, actual results may vary materially from those described in the forward-looking statements.

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

¹ REUTERS March 11 025
² Lazards LCOE Report June 2025 Slide 14
³ POWERING AI WITH AMERICAN ENERGY: NATURAL GAS
⁴ The World Nuclear Association Report - August 2024