Solar Flow-Through 2012-I Limited Partnership

Solar Flow-Through 2012-I Limited Partnership

February 05, 2015 15:52 ET

Solar Flow-Through 2012-I Limited Partnership Provides Progress Report for Unitholders

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 5, 2015) - Solar Flow-Through Limited Partners ("Solar Flow-Through"), a limited partnership with offices in Vancouver and Toronto, reports that its 2012-I Limited Partnership ("2012 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 2012 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 2012 LP has a targeted income distribution of 8% per annum. In December 2012, the 2012 LP raised $2,857,000 (2012 Proceeds).

FIT 2.1 Project Progress - Construction Underway

The 2012 Proceeds were used to secure Ontario Power Authority (OPA) Feed-in-Tariff 2.1 (FIT 2) Contracts to develop solar PV projects (FIT 2 Projects). These projects, once operational, will produce electricity under the OPA FIT 2 Contract at a guaranteed rate of payment over 20 years. A large amount of the FIT 2 Projects are being engineered and constructed by Panasonic Eco Solutions Canada Inc. By the end of Q2 2015, construction for substantially all the FIT 2 Projects is expected to be complete.

FIT 3 Projects - 2012 LP and 2013 LP with Partners to Receive Over 100 Contracts

In addition to the FIT 2 Projects, the 2012 LP, in partnership with the 2013 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. In December 19, 2014, the OPA announced 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 December 19, 2014 announcement, the 2012 LP and the 2013 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 2012 LP and 2013 LP. The remaining economic interest of approximately 26.7 MW AC (or ~32.0 MW DC) is held by companies controlled by the 2012 LP and the 2013 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 receipt of 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). It is intended that some of the 2014 Proceeds will be used to fund development expenses of the FIT 3.5 Projects held by the 2012 LP and the 2013 LP. As a result of the 2014 LP's funding of the FIT 3.5 Projects, the 2014 LP will have an economic interest in the FIT 3.5 Projects along with the 2012 LP and 2013 LP.

Performance - Dividends Continuing in 2015

As a project becomes operational, it will produce electricity and generate revenue over the 20 years of the FIT Contract. The 2012 LP began paying dividends in 2014 at the rate of 2% per quarter. As the FIT 2 Projects become operational in 2015, the distributable cash flows to the 2012 LP are expected to be sufficient to meet the targeted income distribution of 8% per annum. As a result, Management expects to continue paying 2% dividends on a quarterly basis. One hundred percent of any distributable cash flows to the 2012 LP in excess of this target distribution of 8% per annum will be paid to the unitholders subsequent to each year end.

About Solar Flow-Through

Solar Flow-Through, 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 2012-I Limited Partnership

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