Powerbank receives first $4M (U.S.) in $41M (U.S.) deal

Executive Summary

• PowerBank Corp. has received an initial $4 million USD payment from Solar Advocate Development LLC as part of a broader $41 million USD transaction for the engineering, procurement, and construction (EPC) of three community solar facilities.
• The transaction includes the Elmira, Jordan Road 1, and Jordan Road 2 projects, representing a combined capacity of 16.87 MW and marking PowerBank's 11th partnership project with Solar Advocate Development.
• The deal reinforces PowerBank's strategic alliance with Solar Advocate Development, which has now extended to seven years, validating the company's development excellence and market position in New York.

Key Details

• Transaction Value: Approximately $41 million USD.
• Initial Payment: $4 million USD received (as of the release date).
• Payment Structure: The remaining balance is expected to be realized as construction milestones are achieved throughout the development period, aligning with standard industry practice for solar EPC contracts.
• Project Scope: Full engineering, procurement, and construction services through commercial operation for three specific community solar facilities:
  • Elmira
  • Jordan Road 1
  • Jordan Road 2
• Total Capacity: 16.87 megawatts (MW) of clean energy generation capacity.
• Counterparty: Solar Advocate Development LLC (owner).
• Strategic Context: This is the 11th project partnership between PowerBank and Solar Advocate Development, solidifying a seven-year strategic alliance.
• Development Milestones Completed: The initial payment validates the completion of critical early-stage work, including:
  • Utility interconnection agreements securing grid connection rights.
  • Comprehensive permitting from local authorities.
  • NYSERDA program qualification for state incentives.
  • Site control, environmental assessments, and engineering designs.
• Financial Performance Context: PowerBank reported returning to profitability in Q1 2025 with 106% year-over-year gross profit growth, attributed to its development and construction business model.
• Risk Factors: The EPC agreements include a "sell-back right" allowing the owner to terminate the agreement within 60 days of December 19, 2025, if not satisfied with due diligence. Termination would require PowerBank to return received funds. Additionally, changes in government incentives could impact project economics.

Notable Quotes

• Dr. Richard Lu, CEO: "Reaching our 11th project with Solar Advocate Development isn't just a transaction milestone -- it's a testament to PowerBank's ability to consistently deliver permitted, interconnected assets that meet the highest-quality standards. This seven-year partnership validates our development expertise and reputation in the New York market. The One Big Beautiful Bill Act has created urgent conditions to monetize select development projects while maintaining our IPP growth focus. These proceeds enable PowerBank to deliver the projects in a timely manner for Solar Advocate Development."