Special Edition - Q&A with SolarBank Corp.

As promised, we have a special edition of Funding Secured this week featuring an exclusive Q&A with one of the most exciting Renewable Energy companies in North America: SolarBank Corp. (NASDAQ:SUUN, TSX:SUNN).

Why are we interested in solar energy?

Beyond being a renewable and sustainable energy source that reduces reliance on fossil fuels and lowers carbon emissions, solar power can offer long-term cost savings by cutting electricity bills while promoting energy independence through on-site generation.

Research shows the global solar energy market was valued at $255.40 billion in 2024 and is projected to grow to $1.15 trillion by 2034, expanding at a compound annual growth rate (CAGR) of 16.4%.

What is SolarBank (NASDAQ:SUUN)? 

SolarBank is strategically positioned across the entire value chain to participate in this growth. The company is an independent developer and owner of renewable energy projects, specializing in distributed and community solar initiatives in Canada and the USA. By focusing on solar projects that provide electricity to utilities, commercial, industrial, municipal, and residential customers, and with a diverse portfolio across leading solar markets, SolarBank maximizes returns through utility partnerships, community solar, virtual net metering projects, and IPP or Independent Power Producer projects.

Join us for our exclusive interview with SolarBank’s CEO, Dr. Richard Lu, president and CEO of SolarBank.

Dr. Lu has over 25 years of experience in the global energy industry, with a strong focus on developing and executing growth strategies across North America, Europe, and Asia.

Before leading SolarBank, he held senior roles at Enbridge (TSX:ENB) and Toronto Hydro, and his expertise spans renewable energy, clean energy solutions, and corporate strategy. He was also involved in the sale of Sky Solar Holdings to Square Acquisition Co., and he's played a key role in SolarBank’s growth, including its Nasdaq listing earlier this year and the expansion of solar projects across North America.

Under his leadership, the company is developing over 1 GW worth of projects, has built and sold more than 100 megawatts of solar power, and operates with a unique business model that ensures better control over quality and margins. But I’ll let Dr. Lu tell you more about that. Dr. Lu, welcome.

This interview has been edited for length and clarity.

Thank you, Taylor. It’s a pleasure to be here and to share our story with your audience. I really appreciate the opportunity.

We're excited to have you on. You’ve had an impressive career, working with both major corporations and startups. Can you tell us more about your career path and some of your key successes?

I’ve been in Canada for 34 years, and throughout my career, I’ve always focused on the energy sector. I spent a good part of my career with Enbridge, where I learned the traditional fossil fuel pipeline business. Later, as Vice President and Chief Conservation Officer at Toronto Hydro, I gained a deeper understanding of energy generation, transmission, distribution, and services. I was also responsible for Toronto Hydro’s renewable energy initiatives.

In 2007, I left Toronto Hydro to pursue entrepreneurship. In 2012, I launched a company that capitalized on Ontario’s Green Energy Act, capturing a significant share of the market. Fast forward to today, and SolarBank is now a NASDAQ Global Market listed company.

That’s incredible. I must highlight for our audience, you’ve grown revenue to $58.4 million from $18.4 million the previous year, a massive leap. As Funding Secured focuses on companies that have successfully raised capital, can you share some insights into your fundraising efforts, how much you've raised, and where you've found the most success?

Initially, we developed solar projects, took them to construction-ready status, and sold them to investment funds. That’s how we generated our early revenue and kept the company running. We handle engineering, procurement, and construction (EPC), with the buyers funding the projects. Through this approach, we’ve done about $58 million in revenue as of this June 30th year end, and our EPC work has managed over $300 million in project financings, with milestone payments from clients like Honeywell, so we haven’t had to raise much money.

As such, and for corporate purposes, we didn’t raise any funds until our IPO in Canada, where we raised $6 million. We’ve been very frugal with our cash, which gives us great financial flexibility.

That’s impressive. You’ve certainly managed your balance sheet well. Now that you're Nasdaq-listed, what’s the fundraising strategy going forward?

We’re always exploring opportunities to invest more in owning our own solar assets. While we’ve traditionally built and sold projects for others, moving towards owning them as an independent power producer (IPP) offers higher margins for us, so the Nasdaq listing really helps open the fundraising door for us to expand and leverage projects that require more capital.

Owning those projects sounds like a smart move. Let’s zoom out a bit. What's your take on the current state of the solar and renewable energy markets?

The macroeconomics are favorable. Regardless of political changes, both U.S. parties are committed to renewable energy due to infrastructure renewal and increasing electricity demand, particularly driven by AI and the digital economy. The Inflation Reduction Act will invest $369 billion into renewables, which will fuel growth in the sector until at least 2030, and beyond.

That’s a strong outlook. Now, let’s focus on SolarBank. What excites you the most about the company’s future?

I’d highlight three key things: our people, our financing, and our projects.

Our team is small but passionate and highly efficient—25 people generating $58 million in revenue. We manage over $300 million in project financing and have sold over 100 projects. And we have a strong pipeline of projects, including a gigawatt of potential developments across the US and Canada.

That’s impressive. Your strategy of being vertically integrated - developing, building, operating, and owning projects - gives you a competitive edge. Can you explain how that differentiates SolarBank from other solar companies?

Our end-to-end integration allows us to control costs, ensure quality, increase volume, and build lasting customer relationships. We’re not just developers or operators; we’re a full-cycle, zero-carbon power producer. This gives us a unique position in the market and helps us build trust with return clients like Honeywell and various municipalities.

That level of control must significantly enhance your margins. With $58.4 million in revenue, it seems like you’re trading quite a bit under the industry average?

Yes, we’re still relatively new to the market, but the fundamentals are strong. As we continue to grow, I expect the market will catch up with the company’s performance.

Let’s talk about your acquisition of Solar Flow Through. What does that bring to the table?

The Solar Flow Through acquisition adds about $1 million in recurring monthly revenue and strengthens our asset base. We’ve also closed six other acquisitions in the past 18 months. These assets have strong fundamentals, and offer growth potential.

That’s a solid acquisition. As we wrap up, what are your longer term plans for SolarBank over the next 3 to 5 years?

We’ll continue to grow both organically and through acquisitions. We aim to maintain strong revenues from our development work while increasing our asset base. We’ve done $58 million in revenue this year and expect to build on that success.

Sounds like you’ve got a clear path ahead. Before we go, let’s talk about your share structure. How are you managing dilution and protecting the cap table?

We have about 30 million shares outstanding, with 70-80% held by key shareholders and a large portion of that under escrow, including myself. We’re very cautious about dilution and will continue to protect the structure as much as we can while driving significant growth.

That’s smart. It sounds like you’re doing everything right to ensure long-term success. Thank you so much, Dr. Lu, for joining us. You can learn more about SolarBank by searching their tickers (TSX-V: SUNN / NASDAQ: SUUN) or by visiting their website at www.solarbankcorp.com 

Thank you, Taylor. I appreciate the time and the opportunity to share our story. We’re excited for what’s ahead.