Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 323

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1A
Chunk 323
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 pricing and technical interconnection of customer-owned electricity generation may
not continue, and changes to these regulations and policies might deter the purchase and use of solar energy systems and negatively impact
development of the solar energy industry.

The market for solar
energy systems in the United States and Europe is heavily influenced by foreign, federal, state and local government regulations and policies
concerning the electric utility industry, as well as policies adopted by electric utilities. These regulations and policies often relate
to electricity pricing and technical interconnection of customer-owned electricity generation and there is no assurance that they will
continue. For example, the vast majority of the United States has a regulatory policy known as net energy metering, or “net metering”,
which allows our customers to interconnect their on-site solar energy systems to the utility grid and offset their utility electricity
purchases by receiving a bill credit at the utility’s retail rate for energy generated by their solar energy system that is exported
to the grid and not consumed on-site. The customer consequently pays for the net energy used or receives a credit at the retail rate if
more electricity is produced than consumed. Net metering, in some states, is being replaced with lower credits for the excess electricity
sent onto the grid from solar energy systems, and utilities are imposing minimum or fixed monthly charges on owners of solar energy systems.
These regulations and policies have been modified in the past and may be modified in the future in ways that can restrict the interconnection
of solar energy systems and deter purchases of solar energy systems by customers. Electricity generated by solar energy systems also competes
most favorably in markets with tiered rate structures or peak hour pricing that increase the price of electricity when more is consumed.
Modifications to these rate structures by utilities, such as reducing peak hour or tiered pricing or adopting flat rate pricing, could
require the price of solar energy systems to be reduced in order to compete with the price of utility generated electricity.

Risk related to
legal rights to real property in foreign countries.

Our energy facilities
may be located on land which may be subject to government seizure or expropriation. For example, properties relating to the Company’s
operations in Scornicesti, Romania, are subject to an ongoing expropriation procedure due to the construction of a new express motorway.
The authorities have offered the Company cash as compensation. The process commenced in Q1 2022, and we still have not received any compensation
to date. In this case, we believe that the offered compensation