Disseminated on Behalf of: Stardust Solar Energy Inc.
Eamonn McHugh, COO of Stardust Solar Energy Inc. (TSXV: SUN | OTCQB: SUNXF | FSE: 6330), discusses the company’s position as North America’s largest solar franchise network, its accelerating global expansion, its flagship 30-megawatt utility-scale solar project in Zambia, and the launch of the Stardust Energy Asset Fund, creating a new opportunity for investors to participate in the company’s growing renewable energy asset strategy.
The company’s international expansions into Antigua and Barbuda, Mexico, and Zambia; its vertical expansion into large utility-scale power purchase agreement (PPA) projects; and its new energy asset fund opportunity for investors are all strategically aligning with the company’s objectives to streamline energy project financing and to invest in diversified energy-producing assets.
Utility-scale PPA model driving returns
With an established solar franchise network serving residential and commercial markets across North America, Stardust Solar is now expanding its platform into utility-scale energy development, long-term power purchase agreements, and renewable energy asset investment and ownership. According to McHugh, “Expanding into our first flagship [30-megawatt] utility-scale PPA project is an exciting moment for Stardust Solar.” This strategy diversifies Stardust’s revenue model toward long-term, recurring cash flows, strengthens its position as an international renewable energy developer, and creates a platform to connect institutional capital with large-scale energy infrastructure opportunities.
Additionally, with the scale of this expansion, the company has structured its approach with a special purpose vehicle (SPV) joint venture. The SPV structure is designed to protect shareholders from dilution and strengthen shareholder value, while managing execution risk and optimizing financial returns for the company.
Zambia project de-risks institutional entry
With major development finance institutions redirecting capital to emerging-market renewable energy, Stardust Solar is capitalizing on early-stage infrastructure demand. The flagship 30-megawatt Zambia project is backed by a 20-year power purchase agreement with the country’s national utility, Zambia Electricity Supply Corporation (ZESCO), at US$0.07/kWh, supplemented by sovereign payment guarantees from the Government of Zambia and conditional approval for additional insurance coverage from Export Development Canada.
With its SPV structure and Stardust Solar Energy positioned as the developer, the project is estimated to generate approximately US$30 million in revenue for the development of the project and US$90 million to US$100 million in total energy sales over the PPA term. This structure provides investors with leveraged exposure to a de-risked, government-backed renewable energy asset, while optimizing the company’s financial returns and shareholder value.
Zambia project ready for capital deployment
Stardust Solar’s Zambia project has reached critical milestones. McHugh states, “The project preparations are complete. It’s packaged up. At this stage, we are entertaining multiple investment partners, expecting financial close, and preparing to break ground on the project soon.” Following the company’s request for proposal process, Gamma Power was selected for overhead transmission lines, and POWERCHINA for the build of the solar plant. Along with the completed project analysis and preparations, these developments indicate the project is ready to progress from planning to execution upon financial close.
Stardust Energy Asset Fund, North America
Alongside the company’s flagship Zambia project and following the company’s recently completed solar lease-to-own pilot program in North America, Stardust has expanded on its energy investment strategy with its Stardust Energy Asset Fund. The fund is designed to help make the company’s products more accessible to North American energy consumers, while providing investors an opportunity to share in its diversified energy asset ownership and asset-backed financial returns.
“While government incentives in North America are shifting, we have adapted to create the Stardust Energy Asset Fund,” McHugh states, “in order to make these energy assets more accessible to consumers and to provide a vehicle for investors to own diversified energy assets in North America.” The company expects to release further details on the lease-to-own program and energy asset fund soon.
Strategic positioning in energy transition
As Stardust Solar advances from its foundational solar installation franchise model toward institutional-scale renewable infrastructure, it stands at the intersection of distributed energy deployment and long-term contracted returns. With the Zambia project primed for financial close and the Stardust Energy Asset Fund expanding North American access, the company is positioned to deliver disciplined, capital-efficient growth in renewable energy infrastructure.
Transcript
Transcript lightly edited for clarity
Eamonn McHugh: Stardust Solar Energy is the largest solar franchise company in North America. Our franchise model is very simple: our franchisees across North America service and install solar, battery, and EV charger projects as the construction arm of the business, while the head office provides engineering services, solar equipment, products, and other professional services.
The company has scaled from launching five years ago with the initial franchise launch from our first 10 franchises to now approximately 100 territories being serviced across North America.
I’ve been in the solar industry and in the energy sector for 15 years, including the past five as one of the founding partners at Stardust Solar Energy. I’ve seen government incentives, whether federal, state, local, municipal, or utility-level, come and go over the years, as public interest shifts from left to right and back again.
To mitigate the changes in government incentives, for example, in the U.S. and Canada, it has prompted us to adapt long-term energy investments in North America, investing in energy assets that will be there for the long term and give long-term returns, making us less reliant on government incentives.
It’s also prompted us to expand on an international level with the addition of franchises in Antigua, Mexico, and Zambia, Africa, allowing us to capitalize on different markets.
Expanding into our first flagship utility-scale PPA project is an exciting moment for Stardust Solar. I recently came back from Zambia, Africa, doing the initial groundwork for the project. The power purchase agreement for this project is of the utmost importance. Firstly, we have a 20-year power purchase agreement with ZESCO, which is the national state-owned utility of Zambia. That power purchase agreement offers us US$0.07/kWh for all energy produced over the 20-year term.
In addition to that, we have implemented what’s called a direct agreement, which essentially gives Stardust Solar Energy agency and control over that power purchase agreement. We’ve also received an implementation agreement from the Ministry of Energy of Zambia, which is the Zambian government backing the obligations of the national utility in those long-term agreements.
In addition to that, we put a few insurances in place. We have a sovereign payment guarantee issued through the Government of the Republic of Zambia and ZESCO, essentially providing a three-month escrow account required to be held for all long-term energy sales. On top of which, we’ve also received conditional approval from Export Development Canada, providing further insurance beyond those three months for long-term energy sales.
We’ve completed the public request for proposal process, and the bidders that we’ve selected are both very reputable companies: Gamma Power for the development of the overhead transmission lines, and POWERCHINA for the development of the solar plant.
Unlike our typical franchise model, this scale of a project is proposed to be structured with a special purpose vehicle as a joint venture, where Stardust Solar Energy, the local franchisee, and investment groups and partners would have shared ownership. This is important to protect the company from dilution, protect shareholder value, and protect us from risk as well.
For our flagship 30-megawatt power purchase agreement project in Zambia, with its SPV structure, Stardust Solar Energy is positioned as the developer for this project. We would have shared ownership over that and provide development services for the build of the project. It’s estimated at about US$30 million for the project development and is estimated to produce approximately US$90 million to US$100 million over the 20-year PPA term.
The project preparations are complete. It’s packaged up. At this stage, we are entertaining multiple investment partners, expecting financial close, and preparing to break ground on the project soon.
While government incentives in North America are shifting, we have adapted to create the Stardust Energy Asset Fund in order to make these energy assets more accessible to consumers and to provide a vehicle for investors to own diversified energy assets in North America.
Stardust Solar is a great up-and-coming company. It’s a great time to get in at this point. We have our flagship Zambia 30-megawatt project for large investment groups or institutional investors. However, that window is closing fairly soon.
Alternatively, we have the North American Stardust Energy Asset Fund for investors interested in owning energy assets and getting long-term returns. And there’s also the public market. Our share value within the first two years since our public listing is still fairly undervalued for the true potential of this company. So, it is still a good time to get in.
About Stardust Solar Energy Inc.
Stardust Solar Energy Inc. (TSXV: SUN | OTCQB: SUNXF | FSE: 6330) is a globally expanding renewable energy company supporting the installation, development, financing, training, and deployment of residential, commercial, and utility-scale solar solutions across international markets. Through its growing franchise network and expanding portfolio of decentralized energy infrastructure, the company is building a diversified renewable energy platform focused on recurring revenue, long-term asset ownership, and accelerating the global transition to clean energy.
Learn more at stardustsolar.com
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