PowerBank Corp. reported that a third-party buyer has returned two New York community solar projects to its portfolio after the sites failed to secure local permits. The move underscores the impact of local zoning boards on solar project timelines.
In a Form 6-K filed with the SEC, the developer disclosed that Qcells exercised a sell-back option for the Gainesville and Highway 28 projects. These two sites were part of a larger 48 MW portfolio sale valued at approximately $49.5 million, but the transactions were terminated because the projects did not receive the required permits by the contractual deadline.
In the town of Gainesville, the project was stalled by a variance denial from the local board. PowerBank is currently challenging that decision in the Supreme Court of the State of New York. Qcells chose to exercise its contractual right to return the assets rather than wait for the outcome of the litigation.
The termination follows data showing that federal and local permitting hurdles are currently stalling roughly 11 GW of clean energy capacity across the United States. While timely permit approvals have improved at the state level in 19 jurisdictions, local municipalities in New York continue to exercise significant authority over land use.
Localized roadblocks often lead to material cost increases and project abandonments. In many cases, developers are forced to site projects specifically to avoid complex review processes, even if it means moving away from optimal solar resources.
As a result of the sell-back, PowerBank is required to return the advance payments it received for the two sites. The company noted that two other projects included in the original Qcells deal, Hardie and Rice Road, remain on track. Those projects have a combined value of $22.88 million and are expected to reach commercial operation in early 2027.
Alongside the sell-back news, PowerBank announced a new lease for a 5 MW AC solar-plus-storage project on Conklin Hill Road in New York. This project is expected to qualify for state incentives through the NYSERDA NY-Sun and Retail Storage programs.
The company is now considering developing the Gainesville and Highway 28 projects as an independent power producer. This enables PowerBank to retain long-term revenue from the assets if the current legal challenges lead to approval of the necessary permits.
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