Solar Alliance Targets Massachusetts as First New Market under Crius Solar Origination Agreement

“Solar Alliance’s core competency is sales and marketing. Partnering with Crius Solar allows us to maintain our high margins and reduce overhead costs associated with the installation process. We believe this model allows for aggressive growth while maintaining fiscal responsibility”

Solar Alliance Energy Inc. signs Solar Origination Agreement with Crius Solar, LLC (“Crius Solar”), an affiliate of Crius Energy, LLC. Under the agreement Solar Alliance will be targeting eastern Massachusetts for sales team expansion and the Company expects to have a sales team in place this summer.

Each new market will consist of a sales team that is capable of driving residential solar system sales representing approximately US$12,000,000 in top line revenue annually. The implementation period for a new sales team is expected to be approximately three months. The Company is also assessing potential acquisitions of local sales and marketing companies that will help achieve our targets.

“The expansion plan being pursued with Crius Solar is in line with our current model of utilizing external installation partners instead of being vertically integrated,” said Solar Alliance Chairman and CEO Jason Bak. “Solar Alliance’s core competency is sales and marketing. Partnering with Crius Solar allows us to maintain our high margins and reduce overhead costs associated with the installation process. We believe this model allows for aggressive growth while maintaining fiscal responsibility. We are excited to expand into the Massachusetts market which is driven by high electricity costs, net metering and a renewable portfolio standard with a solar goal along with an accompanying SREC market.”

The Company is taking a responsible approach to expansion through this partnership with Crius Solar as it allows Solar Alliance to focus on sales and marketing and rely on Crius Solar for permitting and installation fulfillment. This low risk, low cost growth model fits perfectly with our corporate belief that growth in the solar industry must be done in a profitable manner without over-reliance on the public markets to fund expansion. Expansion into New York, New Jersey, Connecticut and Rhode Island will occur after the Massachusetts operation is up and running.

The northeast U.S. expansion plan represents a new revenue stream that is accretive to Solar Alliance’s current organic and acquisition model that includes the following key elements:

• Organic growth of the San Diego sales team to take advantage of the strongest solar market in the United States.
• Organic growth of the Northern Los Angeles and Orange County sales teams, whose recent addition tripled the size of the Solar Alliance team.
• Managing the installation of the 156 residential solar projects recently acquired in Los Angeles. The Company estimates the pipeline of acquired projects will generate approximately US $2,800,000 in gross revenue and up to US $1,585,000 in accretive gross profit.
• Commercial/industrial sales division that has been building a pipeline of potential projects totaling several megawatts.

Solar Alliance is actively recruiting sales leaders in Massachusetts.