SolarMax Technology, Inc. Plans to Offer EPC Services in the United States

RIVERSIDE, Calif., July 24, 2024 (GLOBE NEWSWIRE) -- SolarMax Technology, Inc. (Nasdaq SMXT) ("SolarMax" or the "Company"), an integrated solar energy company, announced that it plans to offer engineering, procurement and construction services, known as EPC services, for large scale solar systems in the United States, which would include both solar power and EV charging stations. As the initial step in this business plan, SolarMax has signed a non-binding memorandum of understanding for its first major commercial solar installation project in the United States. This proposed project, to be located in Las Vegas, marks a potentially significant milestone in SolarMax' strategy to offer large scale EPC services in the U.S. EPC services encompass the comprehensive management of a solar project from the initial feasibility studies and design through procurement and construction.

The proposed Las Vegas project contemplates the installation of a 4.27 megawatt (MW) photovoltaic (PV) solar power plant, a 2.0 MW energy storage system, and 10 EV charging stations capable of charging 20 vehicles simultaneously. The project is subject to the negotiation and execution of a definitive agreement with the building owner and the present tenant of the building, the negotiation and execution of financing arrangements with a third party to finance the construction of the solar system, and who would also own the system and sell the power to the building owner, and a separate financing arrangement with a third party that would finance the charging stations and would own the charging services and sell the use of the charging stations.

"This project represents the beginning of an exciting new chapter for SolarMax as we are looking to start to scale our commercial EPC services in the US," stated David Hsu, CEO of SolarMax. "By leveraging our experience and success in building large-scale solar installations overseas, we believe we are well-positioned to establish a presence in the burgeoning U.S. solar market."

Solar energy is the fastest-growing source of renewable energy in the US, which is currently the second-largest PV market globally, with over 97 GW of installed capacity as of 2021, representing 11% of the world's total. The market is expected to grow at a compound annual growth rate of 17% from 2021 to 2025, with its value projected to reach $125 billion by 2030, based on industry sources.

SolarMax is looking to leverage its proven large-scale project experience to establish itself as a major company for U.S. commercial solar projects.   SolarMax' proposed EPC projects are being designed to include state-of-the-art technology, customized solutions, and a client-centric approach to project management, as SolarMax seeks to deliver the projects on time and within budget.

About SolarMax Technology Inc.

SolarMax is an integrated solar and renewable energy company. A solar energy system retains the direct current (DC) electricity from the sun and converts it to alternating current (AC) electricity that can be used to power residential homes and commercial businesses. The solar business is based on the ability of the users of solar energy systems to save on energy costs and reduce their carbon imprint as compared with power purchased from the local electricity utility company. SolarMax was founded in 2008 to engage in the solar business in the United States and commenced operations in China in 2016. SolarMax' United States operations primarily consist of the sale and installation of photovoltaic and battery backup systems for residential and commercial customers and sales of LED systems and services to government and commercial users.  SolarMax' China operations consist primarily of identifying and procuring solar farm projects for resale to third parties and performing EPC services primarily for solar farm projects.   All of SolarMax' revenues for 2022 and 2023 and the first half of 2024 was generated by its United States operations. SolarMax' website is www.solarmaxtech.com. Any information contained on, or that can be accessed through, our website or any other website or any social media is not a part of this press release.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act") as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "would," "could," "seek," "intend," "plan," "goal," "project," "estimate," "anticipate," "strategy," "future," "likely" or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements are subject to risk and uncertainties, including, but not limited to, (i) SolarMax' ability to negotiate EPC agreements with potential customers on satisfactory terms; (ii) SolarMax' ability to price its EPC services at prices which will enable it to make a profit from its EPC services and its ability to deliver the project on time and on budget; (iii) the acceptance of SolarMax as a provider of large scale EPC services and its ability to generate EPC business in addition to the proposed agreement described in this press release; (iv) SolarMax' ability to negotiate financing for both the EPC services and the charging stations for each installation on terms that both provide full financing of the project and provide an acceptable cost of solar power generated by the project for the end user; (v) the ability of the solar systems installed by SolarMax to operate in accordance with the specifications; (vi) the ability of SolarMax to compete in a market that is expected to grow increasingly competitive; (vii) government regulations making solar energy an attractive alternative to purchasing power from the local utility; (viii) the effects of changes in the United States' trade policies, including any additional tariffs which may be imposed, and (xi) those described in "Cautionary Note on Forward-Looking Statements" "Item 1A. Risk Factors," and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on April 16, 2024 and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's report on Form 10-Q for the quarter ended March 31, 2024, which was filed with the SEC on May 15, 2024. SolarMax undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

Contact:

For more information, contact:

Stephen Brown, CFO

(951) 300-0711

Investor Relations

Dave Gentry

RedChip Companies, Inc.

(407) 644-4256

[email protected]