VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 11, 2015) - Solar Flow-Through 2013-I Limited Partnership ("2013 LP") is proceeding with construction on its FIT 2 solar PV projects in Ontario and is also participating in more than 100 FIT 3 and FIT 3.5 solar PV contracts with its development partners.
The investment objective of the Solar Flow-Through 2013 LP is to develop and operate solar power generation projects in the Province of Ontario in a manner that provides for income tax deductions to investors during the start-up, development and construction phases, and steady income upon commencement of commercial operations of the projects. The 2013 LP has a targeted income distribution of 8% per annum. In October 2013, the 2013 LP raised $10,000,000 ("2013 Proceeds").
FIT 2.1 Project Progress - Construction Underway
In 2013, FIT 2 contracts for the FIT 2 Projects were secured by Solar Flow-Through's 2012 LP. The 2013 LP has funded the development of the FIT 2 Projects for the purpose of securing an ongoing economic interest in them.
The FIT 2 Projects, once operational, will produce electricity under the OPA FIT 2 Contract at a guaranteed rate of payment over 20 years. A large number of FIT 2 Projects are being engineered and constructed by Panasonic Eco Solutions Canada Inc. Project construction is underway, and construction for most of the FIT 2 Projects is expected to be complete by the end of Q2 2015.
FIT 3 Projects - 2012 LP and 2013 LP with Partners to Receive Over 100 Contracts
In addition to the FIT 2 Projects, the 2013 LP, in partnership with the 2012 LP, applied to the OPA for FIT 3 Contracts in Q4 2013. In Q3 2014, the OPA awarded an initial round of 123 MW AC of FIT 3 Contracts. On December 19, 2014, the OPA announced that an additional 100 MW AC of contracts (FIT 3.5 Contracts) would be awarded to projects that applied for FIT 3 Contracts in Q4 2013. Based on the OPA's announcement, the 2013 LP and the 2012 LP, together with their development partners, will receive FIT 3.5 Contracts for over 100 projects (FIT 3.5 Projects) totaling approximately 33.5 MW AC (or ~40 MW DC).
The economic interest in approximately 6.8 MW AC (or ~8.1 MW DC) of the FIT 3.5 Projects is controlled by third-party development partners of the 2013 LP and 2012 LP. The remaining economic interest of approximately 26.7 MW AC (or ~32.0 MW DC) is held by companies controlled by the 2013 LP and the 2012 LP.
Project Development Through 2015 and into 2016
Receipt of the FIT 3.5 Contracts with the OPA is expected to occur by the end of Q1 2015. The development of the FIT 3.5 Projects to the point of being ready to start construction will occur throughout 2015 and early 2016. Typically, four-to-twelve weeks are required to build out a project once it is "construction ready". All the FIT 3.5 Projects are expected to be completed and operational within 18 months of receiving the FIT 3.5 Contract date and before the end of Q3 2016.
2014 LP - $9,868,000 Raised
On December 19, 2014, the third Solar Flow-Through Fund, called the Solar Flow-Though 2014-I Limited Partnership (2014 LP), raised $9,868,000 (2014 Proceeds). Some of the 2014 Proceeds are to be used to fund development expenses of the FIT 3.5 Projects held by the 2013 LP and the 2012 LP. As a result of the 2014 LP's expected funding of the FIT 3.5 Projects, the 2014 LP will have an economic interest in the FIT 3.5 Projects along with the 2013 LP and 2012 LP.
Performance - Dividends to Begin in 2015
As a project becomes operational, it will produce electricity and generate revenue over the 20 years of the FIT Contract. In addition to the FIT 2 Projects, the 2013 LP has an interest in the FIT 3.5 Projects and has an interest in the projects that receive FIT Contracts under the 2015 FIT Application round.
It is expected that all the FIT 2 Projects will be operational in Q3 2015. As a result, Management intends to begin paying dividends to the unitholders of the 2013 LP at the end of Q3 2015. Thereafter, dividends will be paid at the end of each quarter.
About Solar Flow-Through 2013-I Limited Partnership
Solar Flow-Through 2013-I Limited Partnership, a Canadian-based partnership with offices in Vancouver and Toronto, was formed to develop and operate solar photovoltaic (solar PV) power generation projects in the Province of Ontario. Solar Flow-Through's investment objective is to provide investors with favourable income tax benefits during the development phases of solar PV projects, followed by steady and attractive income once commercial operations begin. For more information, visit www.solarflowthrough.com.
ON BEHALF OF THE BOARD:
Matt Wayrynen, CEO
Solar Flow-Through 2013-I Limited Partnership