- Solar energy provider UGE International (UGE) has won another community solar project in the U.S. state of Maine
- The company’s latest project is worth approximately C$12.5 million, and should be deployed within roughly two years
- UGE has been a prolific presence in Maine lately, and expects its project backlog there to continue growing in 2021
- In particular, the company may benefit from recent U.S. regulatory changes, as well as the U.S. President-elect’s incoming administration
- UGE International is up 17.8 per cent and is currently trading for $2.25 per share
Solar energy provider UGE International (UGE) has won another community solar project in the U.S. state of Maine.
The latest project that the company has secured is worth an estimated net present value of US$9.9 million, or approximately C$12.5 million. With a rated capacity of 5.4 megawatts DC, it is one of UGE’s largest projects to date.
The company hopes to finish development and deployment of the project in Central Maine Power territory within approximately two years.
UGE has been a prolific presence in Maine lately, especially in the last twelve months. In 2020, the company signed several agreements for community-scale solar contracts in the state, thanks in part to regulatory changes which allowed such projects.
During the year, UGE completed Maine’s first operational community solar project in Monson Phase I, a 156 kilowatt project.
The company expects its project backlog in Maine to only continue growing in 2021. In particular, UGE may benefit from other recent regulatory changes, such as the U.S. Investment Tax Credit (ITC) extension for solar projects.
The two-year ITC extension for solar projects has just been finalised, and will allow the tax credit for 2021 and 2022 to increase to 26 per cent. Prior to the extension, the tax credits for 2021 and 2022 were 22 per cent and 10 per cent, respectively.
UGE’s CEO, Nick Blitterswyk, commented on how the change of the guard in American politics may benefit both the company and the renewable energy sector going forward.
“The ITC extension directly increases the value of our current project development backlog, while also expanding the addressable market for our offering,” he said.
“Along with increasing support across the United States for community solar and expectations for additional support and initiatives from the Biden administration, our goals, backlog, and opportunities across the U.S. north-east continue to climb as well,” he added.
UGE International is up 17.8 per cent and trading for $2.25 per share, as of 3:04pm EST.