SolarShare Community Solar Bonds
The SolarShare Co-operative invites everyone in Ontario to “Solar Power their Portfolio” through the purchase of SolarShare community solar bonds.
SolarShare bonds are about ‘community power’; opening the door to everyone to participate in the solar economy in Ontario, and reaching individuals who would otherwise not have access to solar generation (those living in apartments, shaded homes, or having limited capital for project investment). It exemplifies what the Green Energy Act and the Feed-in-Tariff program were designed to enable - profitable businesses generating green energy and green returns to the community.
SolarShare has taken on the initial investment, risk, and work in installing solar power projects across Ontario. The co-op currently owns 18 projects representing over 600 kW of capacity, and has launched an offering of Community Solar Bonds to the public.
Individuals and businesses in Toronto and across Ontario are invited to become members of the co-op and purchase SolarShare bonds. The $1000 bonds earn 5% annual returns over a 5-year term, generating revenue from 20-year power purchase contracts.
The co-op model supports the interests of communities in developing new solar power projects, instilling a sense of ownership and allowing members to feel enthusiastic about uniting with other individuals who want to participate in the green energy economy and develop community owned power.
Solar power offsets energy produced by non-renewable sources that emit greenhouse gases. To date (October 17th) SolarShare projects have generated a total of over 236 MWh (megawatt-hours) of 100% solar power, displacing 319,052 lbs of greenhouse gas emissions.
Anyone can monitor SolarShare installations by viewing a live-feed meter on the SolarShare website (solarbonds.ca), measuring electricity and revenue generated. Each project site, spanned across a Google map of Ontario, is marked by a sun icon and leads to photos of the projects and real-time data. Co-op members from the solar technology industry particularly get a kick out of the interactive nature of the projects. Others like to watch the revenue generated and see tangible results of their investments.
TREC: TREC Renewable Energy Co-operative is a non-profit, environmental co-operative that develops community-owned renewable energy projects and educates Ontarians about renewable energy, energy conservation and the community power model. TREC consists of three ‘divisions’: TREC generation (of which SolarShare is a part), TREC Services (building capacity and serving other members of the cooperative community) and TREC Education (an award-winning charity with a range of energy education programs that create a lasting impression on more than 20,000 students and citizens each year).
TREC was the incubator for the WindShare Co-operative, the pioneering ‘for-profit’ co-op that installed and, through it’s 400 members, co-owns the iconic wind power turbine at Exhibition Place, providing renewable electricity to the people of Ontario through community ownership.
SolarShare partners with a variety of organizations that promote sustainability and community development, including the Ontario Sustainable Energy Association, the Community Power Fund, the Centre for Social Innovation, Evergreen, the Canadian Solar Industries Association, On Co-op, and others.
SolarShare has a comprehensive 20+ year business plan that spans the length of the power purchase agreements (PPA’s) all SolarShare projects have secured with the Ontario Power Authority. These PPA’s guarantee revenue for each electron generated by SolarShare’s portfolio of 18 solar power projects until 2031. Projected annual generation for the installed capacity, which totals over 600 kW, is $489,000 in the first year, with about 0.5% degradation in panel output (and thus revenue) over 20 years.
To ensure the viability of SolarShare, emphasis is placed on marketing memberships to all Ontario citizens and businesses, enabling everyone to invest in SolarShare. In the emerging ‘impact investing’ market, SolarShare Community Solar Bonds offers ‘triple bottom line returns,’ presenting economic, social, and environmental benefits.
Currently only one bond is available per member as regulatory approval is pending, most likely until late 2011. At that time, members will be able to file their Community Solar Bonds into self-directed RRSP/ RESP/ TFSA accounts, and purchase an unlimited number of bonds. Market research indicates investors are keen to invest an average of $5,000 in SolarShare bonds, and to hold bonds in registered accounts.
Comments
Bright Idea
Interesting notion - putting power in the hands of the people. Sounds like a win-win but requires due diligence.
I'm taking this one to my green advisor.
good idea
LOL. Nice cross referencing!
Your green advisor would probably point to the various options open to you for green power, including Bullfrog Power, or "free contracts" such as Pure Energy (love the Mercer video), community power options, or straight up purchase of PV options or thermal (see this video with Ken Traynor).
As a shareholder in the Windshare turbine, I like this proposal too!
Exciting
Solar Share is one of a kind in North America. It will be exciting to see it grow.
Finally!
I may be biased here, but finally, here is a clearly ethical investment that benefits the environment and the investors at the same time. Plus, it puts power in the hands of Ontario citizens (yes, that pun was intended!).
It's also great that investor's money is only invested in projects that are already complete and generating... not anything that is speculative. Where else can you get a dependable 5% return and be cleaning the air at the same time?
Risk factor
Thanks for pointing that out Mike. By securing construction finance up front, we're able to offer bonds in projects that are already producing power, taking the more risky construction and connection stages out of the equation for new members / investors. Ensuring the technology is installed and performing at projected rates (through transparent production monitoring available to the public on our www.solarbonds.ca website) and receiving regular cheques already from Hydro One for power produced decreases risk profile for SolarShare bonds even further.
This proposal makes renewable
This proposal makes renewable energy available to the public in a tangible way. I think it is a great idea!
Solar Bonds
This is one of the best green investment. I was there at your SolarShare presentation. I will talk to my daughter and her fiancé to buy your Bonds.
If you provide some comfort zone for investors like other secured bonds, that would attract lot more people.
Re; other community power bonds in development by TREC
SolarShare is looking to grow security of our community solar bonds by building the project pipeline, further diversifying the risk and taking advantage of economies of scale.
'Parent' co-op TREC has been working for years to try and develop a community-owned wind farm in Bruce County that would produce a better rate of return on investment (due to great wind resource) and allow local residents who have struggled with foreign wind farm development to actually participate in (and financially benefit from) local wind power production. Too bad we can't get access to the grid (an ongoing convoluted and non-transparent process with Hydro One that has continually frustrated our efforts to engage 'community' in 'power'!).
An option for now and tomorrow.
SolarShare is a clear idea at a time when alternate investment options are on the table. The idea is clear in how it contributes to sustainable energy while actually creating a return on investment. With returns of 5%, it would be a viable option on the table with current mainstream investments. It would also offer an accessible, ethical and practical return on top of financial considerations. The idea works today. It is not entirely futuristic and dependent on external factors. There is still obvious risk, but it sounds like real business, with real basics for investing, and that’s attractive.
Great Solar Investment Alternative
The opportunity for home owners to invest in solar and own a piece of the renewable energy transformation is awesome. Some times the cost of putting up your own system can be prohibitive. Solar Share bonds are a great way to make that investment make sense for me!
Strength: Using the
Strength: Using the marketplace to encourage investment in solar energy
Weakness: Would these bonds be valued or rated by a credit rating agency? Especially in light of all of the defaults out there.
Credit Rating
The SolarShare community bonds would be treated, we understand, in a similar way to corporate bonds as far as ratings systems. Please suggest where we would go to follow up on this kind of assessment, I'll dig deeper and report back. Tips welcomed. Thank you!
More on credit rating
Getting SolarShare bonds rated would be a major expense at this early stage of co-op development, and to date our member / investors have not requested such certification. In the future, if the lack of a rating appears to have limited our marketing opportunities, or would open up a large new market for investment, we would consider it when we've paid down our initial construction funding.
That said, regarding credit-worthiness: SolarShare projects generate more than enough cash flow to cover all of the co-op’s liabilities, including interest payments to solar bondholders, as seen in the financial statements (accessible online in the SolarShare offering statement - register at http://solarbonds.ca/invest/investment-portal).
Awesome Community Power!
The democratisation of energy systems, providing community-ownership opportunities and clean, green renewable energy are all very important to the future of Ontario. I'm glad that this project is already built and therefore a low-risk investment! Can't wait for more bonds!
Let's try to get more bonds sold!
Selling more bonds
Indeed James we're doing our best to spread the word, please tell all of your friends about www.solarbonds.ca, 'like' us on facebook at http://www.facebook.com/SolarShare and come to one of our presentations (events listing at http://solarbonds.ca/what's-new/events). With your help we can build the SolarShare community!
Triple Bottom Line
Great investment opportunity with returns beyond just financial - this project offers the chance to get a competative return on your investment, support your community AND help the enviroment.
I wish we could see more
I wish we could see more democratized energy intiatives such as this one throughout Ontario. Great!
Renewable Energy Co-ops Across Ontario
There are a number of renewable energy co-ops forming across the province, although as far as I am aware only SolarShare selected the financial strategy to seure construction financing up-front, and has projects in the ground (and on the roof!) already. Visit the Ontario Co-op Association's website to learn more about RE co-ops, at www.ontario.coop - 2012 is the international year of the co-op so lots going on.
Power in the Community
I love this idea as it gives everyone (not just homeowners and property owning corporations) an opportunity to invest in a clean energy future. It also lowers the "buy in cost" which makes if affordable for a lot more people to own some sun power.
Right now the solar sites are mainly rural or in the north. So it's not exactly "power in the community." I would think that building the solar array in the community (i.e. on a local school or community centre) would increase the interest from the community to finance it. Offering bonds specific to a project in an investor's neighbourhood might be a good "social contract" marketing tool. I'm wondering if more community solar projects have been looked at and what are the challenges here?
Community-based projects
Right you are Rob that SolarShare should be (and is) focused on local markets and solar power education where the projects are located. We're actively pusuing projects on pubic buildings such as schools and community housing. Challenges include raising bridge financing and competing for projects in an active market. Working on it! Partners who have projects and the intent to involve community invited to contact [email protected] to discuss further.
Creating local solar jobs
This idea is amazing because it generates solar jobs in Ontario and keeps the profits local. Manufacturers, engineers, rural landowners earning additional revenue, investors - everyone wins.
SolarShare accessibility
At last, a renewable energy project which allows city-dwellers without roof space to participate directly in combatting global climate change! And with a guaranteed return thanks to Ontario's feed-in tariff programme!
Local residents - say in a housing co-op - could pool funds to raise the $1000 required to buy a SolarShare bond.
A wonderful venture!
Wider advertising.
Marketing SolarShare
Thanks for the props. We'll ramp up our marketing efforts once we are given the 'go' to sell multiple bonds, upon receipt of our share offering. In the meantime, we're hoping our fans will become members and buy one share, as we build the 'community' part of community solar - Join us!
its amazing...
i believe that this is a good proposal and by having a community share this initiative for production of solar power is outstanding. it is very relevant that having solar equipment installed in every house might be expensive and not all households have that ability to harnass solar power but they can contribute it by buying bonds and having a greener energy source build in ontario...
solar
The solar market is not looking too bright these days
until costs go down solar is a bad investment
Solar Share Prices
While there is a lot of press right now about solar stock prices in decline, let's not throw the baby out with the bathwater.
SolarShare bonds offer 5% return for 5 years - a competitive retail investment opportunity not only on an economic level, but also delivering social and environmental benefits through the creation of community-owned renewable power.
SolarShare projects are already built and producing power under fixed price power purchase agreements, using proven solar technology - we post our power and revenue generation online real-time at www.solarbonds.ca. The co-op’s 18 projects generate more than enough cash flow to cover all of the co-op’s liabilities, including interest payments to solar bondholders
For more information, please review the co-op’s financial statements (accessible online in the SolarShare offering statement - register at http://solarbonds.ca/invest/investment-portal).
Thanks for giving SolarShare bonds the attention they deserve - in a down market they are a ray of sunshine (sorry, couldn't resist).
Solar Share
It gives people who haven't a good situation for solar generation a chance to support this green technology.
Participating in the renewable energy market
That's exactly what TREC Renewable Energy Co-op (SolarShare's co-op creator) means by 'community power' - giving everyone the chance to participate in the market created by the Green Energy Act in Ontario, by becoming a power producer / investor as well as consumer.
local benefits beyond investors
SolarShare is a unique investment opportunity in a corporately dominated investment world and it offers competitive returns that can keep up with any low entry level financial product in the market today.SolarShare bonds are equitable, accessible and benefit the investors, the landowners who receive a lease paymet for hosting a system on their property (10% of production) and the Ontario economy. Community owned power is the future, SolarShare is to be congratulated for being ahead of the game with projects in the ground and generating power.
the proposal is stellar, its the proccesses that are limiting the spread of SolarShare and similar inititaives
like it
i like the transparency and monitoring - I didn't quite catch if these are completely guaranteed bonds?
Solarshare
Great way to generate investment in renewables that wouldn't happen otherwise
The ClimateSpark Social Venture Challenge is a project of:
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Bulk buy
This proposal allows anyone to get into the game of solar even if you don't own a home, your dwelling isn't suitable for solar installation, or you don't have the full amount of capital available to invest in your own solar generation. And in the end, it mayb be that larger solar installations have the scale - and the locations - that allow for more highly optmized solar generation overall. A great idea - and a great complement to residential solar options!