SolarBank Corporation (SUNN-NE) has sunny days ahead, president and CEO Richard Lu said, as the Toronto-based company looks forward to fulfilling a $1.5-billion project pipeline and prepares for expansion into electric vehicle (EV) charging and data centres.

A developer, independent power producer and asset manager, SolarBank has reason to be optimistic, Lu outlined in an interview with Sustainable Biz Canada. Revenue for fiscal year 2025 has already exceeded last year, on top of its pipeline and the solar industry’s growth that keeps exceeding expectations.

He is maintaining his rosy outlook despite the return of Donald Trump to the White House, who has already acted on his opposition to clean energy and is likely continue the tariffs on solar panels made outside the U.S.

“People are putting too much perceived risk on renewables. We don’t see it that way. Actually, we love it,” Lu said.

SolarBank's 'very, very healthy pipeline'

SolarBank owns 32 megawatts (MW) of assets in Canada and the U.S. that generate recurring revenue, a result of its vertically integrated business structure. It also has 124 MW of projects in Canada and the U.S. that are coming online, with the company weighing whether to own and operate, or sell the assets.

Last year it made $58.4 million in revenue for fiscal year 2024 that ended Sept. 30. Lu highlighted two projects that have already put SolarBank ahead for 2025:

• The Ontario government’s contract for three battery energy storage systems totalling 60 megawatt-hours of capacity. The project that will generate $8 million in revenue brought in $3 million in financing and a loan of $25.8 million from RBC; and
• Qcells acquiring four upstate New York solar projects from SolarBank for approximately $71 million that total 25.6 MW of capacity.

SolarBank's upcoming projects, worth $1.5 billion, add up to 1.2 gigawatts of capacity that could be delivered in next few years. Its “very, very healthy pipeline” hedges for political instability, Lu said.

EV charging and data centres

SolarBank has its sights set beyond solar development and power production, announcing in 2024 it would pursue EV charging and energy-efficient data centres. Lu said SolarBank branched into the sectors in anticipation of energy demand skyrocketing in both those sectors.

For EV charging, the goal is to build a network of charging infrastructure across Canada. The company filed for $1.5 million in grant applications to develop three fast charging stations in the Ontario cities of Woodstock, Peterborough and Milton. SolarBank is partnering with Walmart on the West Coast for EV charging, and plans to start operations this year.

The proposed solution for data centres is behind-the-meter microgrids to energize data centres through power purchase agreements for renewable energy and batteries.

“Instead of using grid power as the main source of power, we are now using all the power behind-the-meter as the main power and using the grid as a back-up,” Lu summarized.

A major advantage of a microgrid is that it can be built faster than a grid connection, the CEO said. A microgrid can be ready in two to three years, as opposed to a grid connection that typically requires five to seven years.

Spacious, rural jurisdictions would be ideal for the microgrids, Lu said, citing locations such as northern Ontario, the U.S. Midwest, California, Texas and Arizona.

Staying bright about the sector 

Lu is upbeat about the solar industry.

He acknowledged the vocal resistance to EVs and the anti-renewables rhetoric from the Trump administration. But he noted solar energy has been growing quickly over the last decade and is now cheaper than fossil fuel-powered plants.

The economics are so compelling it can overcome Trump’s moves to stifle renewable energy, Lu said. The U.S. president, he continued, has not concentrated his ire on solar energy (that distinction goes to wind), and ally Elon Musk has his SolarCity business.

Furthermore, Lu suspects Trump’s cabinet and supporters are pragmatic enough to understand the solar industry will most benefit Republican-controlled states, and solar infrastructure can be built quickly. He is also hopeful the Department of Government Efficiency will cut the red tape that slowed the build-out of energy infrastructure and permitting.

“At the end of the day, you already know that renewables — solar, wind — are already producing power cheaper than those traditional fossil-based or nuclear if you do a full cost accounting. I think there’s a balance; it’s not about is-or, but all of the above.”

For the next one to three years, Lu said SolarBank will continue with vertical integration, deploy more resources into commercial, industrial, community solar and data centre applications, and increase its ownership of renewables assets.

One goal Lu is working toward is for the company to generate an equal amount of revenue from selling and owning infrastructure.

“That will give this company a very solid two legs, that we not only serve our customers by selling them the power plants, but ourselves will own and operate those power plants truly as an independent power producer.”