RE Royalties and SolarBank Secure CAD $3 Million Loan for Ontario BESS Projects

RE Royalties Ltd. has announced a CAD $3.0 million loan agreement with Solar High Yield Projects #1 Ltd., a subsidiary of SolarBank Corporation. The investment aims to support the development of three 4.99 MW Battery Energy Storage System (BESS) projects in Ontario, Canada. These projects have long-term contracts with the Ontario Independent Electricity System Operator.

The loan, bearing an interest rate of 11% per annum over a 12-month term, includes a 0.40% royalty on gross revenues from the projects, potentially reduced to 0.25% if repaid within six months. SolarBank has a 50% interest in the project companies, with the remainder owned by First Nations communities in Ontario. The project is part of SolarBank’s strategy to diversify and grow their renewable energy portfolio.