SolarShare Community Solar Bonds (Finalist.)
UPDATE: 11/11/14
Thanks for the comments and words of encouragement on the SolarShare submission conversation and posting page - in particular we appreciate the intent of most of the commentators to participate in SolarShare's community power model when we reach regulatory approvals stage.
Our vision for SolarShare is to build the co-op’s project pipeline and maximize the number of citizens who can become members and invest in solar in Ontario through SolarShare bonds - inclusion, engagement, education and empowerment through economic returns are key. How expansion plans are going to play out is tough to say: in addition to the regulatory hurdles, there are many variables including access to capital, new energy prices, and effective widespread marketing outreach.
And that's what we're hoping to accomplish with the support of ClimateSpark. We're hoping SolarShare Co-operative makes it to the next round, to access the advice and direction we need to keep our idea growing, so that everyone in Ontario can “Solar Power their Portfolio” through the purchase of SolarShare community solar bonds and participate in the solar economy in Ontario.
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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.
In the few weeks since we posted our SolarShare submission, the total output of our installations has climbed to 270 MW, which using Environment Canada's latest .186 g/kWh equation means carbon displacement of over 50,000 kg. Why is our track record to date so important? One of the arguments we hear against solar development is that the technology isn’t efficient and doesn’t really produce any significant power. We as a co-op are very keen to provide transparent information to our members and to the general public about how solar works to create energy and limit emissions - and educate ‘solar nay-sayers’!
POTENTIAL: That said, we’re very excited about the future power generation potential and carbon emissions offsets inherent in our portfolio of PV projects. If we never installed another solar power plant, our current portfolio of 18 plans representing over 600 kW of installed capacity, should displace about 152,000 kg of carbon per year, decreasing by 0.5% annually as panels age.
VISION: The vision for SolarShare is to build the co-op’s project pipeline and maximize the number of citizens who can become members and invest in solar in Ontario through SolarShare bonds. How expansion plans are going to play out is tough to say: there are many variables (access to capital is a big one) and a lot depends on the current Feed-in-Tariff review and the new prices being set by the Ontario Power Authority soon. Regardless, the co-op looking to add another 250-500 kW of projects in the very short term, bringing potential offsets to between 200,000 - 250,000 kg of carbon displaced annually.
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.
CHALLENGE: Building project pipeline with limited access to more bridge / construction financing, and tied to a 'one bond per member' restriction until such time as the co-op receives regulatory approval from the Financial Services Commission of Ontario (FSCO).
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.
CHALLENGE: making a lean marketing budget stretch through the 'one bond per member' development period and through the grassroots building of community memberships and education. Having a budget leftover to reach out in a comprehensive manner with a new way of impact investing to a large audience across the Province.
FSCO regulatory approval is pending, most likely until late 2011 or even into 2012. 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.
CHALLENGE: Covering legal costs through the approvals process and determining / actualizing RRSP eligibility.
Comments
National Round table
I was one of the participates of the National Round Table on the Environment http://nrtee-trnee.ca/
At the top level of government and industry they are trying to figuring out how to create a carbon savings program.
I think Co-ops are a great idea.
How do you regulate things and get transparency on th HOEP
http://www.ieso.ca/imoweb/marketdata/hoep.asp
Community bonds - a new way for the future
At last community ventures are figuring a way to tap capital markets to meet Their objectives. Imagine social benefit and aa reasonable return...why not!
Selling more community solar bonds would be a terrific improvement to this proposal.
Solar Bonds are a great opportunity for each of us investors
Solar Bonds are a great opportunity for each of us to become impact nvestors. This is a great proposal and an excellent way for everyone to get involved in developing local renewable power. I hope that retail banks start to sell such products. This will drive a lot of much needed captial into this new industry, and thus boost local economic develop while meeting energy needs. It is a win - win.
Solid return in a shakey investment world
Projects that don't rely on the committed few have a much greater chance to succeed, and this investment is excellent in multiple ways. The return is strong, the investment can be modest, and the vision is fantastic. This enables the economics of solar to work better than individual installations - another plus.
I think that this is a great
I think that this is a great way to provide capital to the renewable energy sector. With a reduction in required returns, we can all get closer to the grid parity that the solar industry is seeking.
Can solar bonds become national in scope?
This proposal is a great start for tapping into a retail investor market. For instance, TAF has been a leader in proving or protoyping new financing strategies that can then be used broadly in the market; such as the Green Condo Loan.
I think this proposal could be a protoype for a bond that has a national scope to finance numerous communtiy owned renewable projects, through a Green Bond.
What role can guarantors have in establishing a scalable product like a national Green Bond and how can we get to that tipping point.... hmmm.
It would be great if the consumer of the solar bond can also become informed as to how much energy their investment has supported through an easy app or online function.
Can't wait to purchase my solar bond!
This is a great opportunity to contribute to the renewable energy movement!
If only it was offered at my bank, I could get my friends and family from across Canada to buy one
Great stuff
SolarShare makes me proud to be an Ontarian and Canadian. It's innovative and has excellent financial and environmental returns. Great stuff!
Great way to invest in green energy without your own system!
I love how SolarShare provides Ontarians, who do not have the capacity to buy their own system, a chance to invest in clean energy and the Green Energy Act. I also love how SolarShare is a co-op, meaning that it focuses on a sense of democracy, community and membership in addition to the financial trasactions that take place. Even more, I love how SolarShare is helping shift our energy systems towards an alternative resource that is free and accessible to all.
Let's continue to build familiarity with the renewable energy co-op sector so that we can build stronger relationships with the general public, government institutions and the financial industry.
unique investment opportunity
Its a rare to find an investment opportunity that is not only offers triple bottom line returns but where you can become personally involved. And as a co-op SolarShare also offers people a democratic voice - one member one vote, regardless of your investment amount. That's a pretty exciting model in todays 1%:99% ratioed world. While SolarShare may not be quite accessible to everyone, its gets pretty damn close. Where else would you get 5% return on a $1000 investment.
This concept needs to be expanded - new groups, new projects and higher investment levels. The regulatory challneges around good ideas are astoundingly entrenched.... I hope SolarShare will be able to break through these barriers in the next year to enable others to replicate the model.
We're working on it!
Hi solar girl,
TREC and SolarShare are both working hard to help similar groups in Ontario start-up, develop and grow! We're strategising and planning to ensure that groups have access to the resources they need to build their own projects and continue this model!
Cheers,
James from TREC
promoting SolarShare
The strength of this proposal is that it allows residents of large, urban residential buildings - a very large proportion of Ontarians - to participate directly in promotion of renewable energy. This is a unique opportunity.
I've recently spoken about SolarShare to two friends who may be interested in becoming SolarShare bondholders. Prehaps it would be a good idea to promote SolarShare in publications such as NOW, EYE, and GRID. Also, an article in SPACING might help.
you had me after the first
you had me after the first paragraph about $1000 @5%.
I'm going to simply assume that you've done the due dilligence on available space, demand for additional hydro purchases through current utilities, rates for small/fluctuating grid contributions, etc. etc.
If all that works out.... you had me at 5% on $1000. In today's economic times where mutual funds are in the tanks and bank interest is <1%, this sounds brilliant.
If the investment is proven relatively safe, I'd love to see this promoted as an investment opportuntiy... even if only at 4%... to a wider base of middle-income families, Not for profits, etc. It's not a cure-all, but it would help those who can't access 8%bond markets, but might be able to pull up 1k.
more renewables - less nuclear
The strength is that every citizen of Ontario can vote with their investment $ to increase renewable power generation. The guarantee of 5% return is also an opportunity to get a good safe return, without taking a risk with the stock market. The weakness is that the opportunity is not available on a more local basis - that is, you can't direct your investment to your own municipality or neighbourhood.
I would like to see more advertising that links the increase in renewables with the opportunity to phase out nuclear. Big nuclear plants on the shore of Lake Ontario near major cities is foolishly risky and also expensive - even after the sale of AECL the federal government is still putting over $200 million dollars into it this year. Enough of the 'hidden' subsidies that make the nuclear industry in Canada seem economically viable. We are paying off the nuclear project overruns from the 80's now, and will be for another 10 or 20 years - just in time to pay off the next budget overruns.
I am investing my point in Solar Share
Today, I will join in on the Ciimate Spark Market and purchase my share for this idea!
Great Project!
With GICs at less than 3% interest this is a great opportunity economically and environmentally!
Can't wait until these bonds are RRSP eligible!
great
well you got me sold. I'm just disappointed I can only invest $1000, and it's not eligible for RRSP until next year.
Others should follow
You guys have a great idea and model here to get people to take ownership and invest in climate changing initiatives such as solar power. I think this can be applied to other areas as well!
Solar Becoming Risky
Serveral articles this week have been warning of the risks involved with investing in solar. Today in particular it is being said that solar is in limbo after a report was released about falling prices.
What effect does this news have on this project? Is it protected against a volatile market?
FIT contracts locked in
There is a FIT review process coming up to review the rates. However, SolarShare's FIT contracts have been approved and are locked in and we will be paid the agreed upon rates for the next 20 years.
Great Business Case
Solid return on investment while promoting the shift to green jobs and renewable energy make this project amazing. Top that off with a co-op model and this is a real winner!
Getting financial planners/advisors informed about the opportunities so that even more people get in on this chance to boost solar power and make profit.
Give ownership
The bond system is grate way to engage the public sector allowing those who may not play the stock market a new vehicle for investment.
Increase the rate of return
Great option for renters
We live in an appartment building and can't build our own solar installation so this project lets us participate and invest in renewable energy.
Can't wait until these bonds are RRSP eligible!
Always good to make use of
Always good to make use of something that occurs naturally and with positive return on our investment!
it requires a huge amount of
it requires a huge amount of investment.
it does not serve the complete demand and needs of the people residing in the building.
it can be improved by cutting unnecssary cost and lowering the budget of the proposal.
by making it eco friendly is a very good example to society.
Community investment in RE common in Europe
Why don't we adopt the best from around the world? Why leave investment to bankers? This is a solid investment, and enables people to benefit financially. Let's get this investment off the ground and build awareness in communities across Ontario.
More city projects ?
It's a great way to bring more people into supporting renewable energy including those without space for their own solar array. And an attractive rate of return for greening your portfolio.
It would be good to have more urban sites to increase exposure and awareness to a larger population. The Daimler rooftop project is a good start but there are a lot more rooftops in Toronto alone. A local elementary school near me (Kew Beach)is trying to gather people into their own community co-op to put solar on the school roof. There must be lots more opportunities like this rather than having most of the projects in the distant countryside.
Emissions reduction potential
Great project, can't wait until you get FSCO approval so I can buy a bunch!
Improve the emissions reduction potential section. First, the numbers in your emissions reduction statement simply don't add up. If your systems installed to date have generated 236 mWh of solar power to date, that is equal to about 44,000 kg of carbon displaced, or about 96,000 lbs (not 320,000 lbs). The carbon coefficient for ontario's electricity supply is .186 g/kwh according to environment canada's latest numbers.
Second, you should tell us about the potential, not whats been achieved to date. How much do you want to expand your installed base of solar projects, and how much carbon will you reduce if you are successful in hitting that target? Don't tell us where you've been, tell us where you are going.
Sun Bonds
I have seen this same idea with Wind power, I think its great idea!
Could be expanded to renewable energy bonds! Although starting with Solar is a good idea.
A great social investment with real returns
I think it is fantastic that this is providing community members the opportunity to invest in a way that will provide solid financial returns, as well as benefitting the environment. The city, province, and country needs more investment like this.
More investors are needed to demonstrate that this is a viable investment opportunity. Hopefully this contest and continued promotion will help to sell more shares and get there soon.
Congratulations for 100 members in Solar Share!
I wanted to let people know that MaRS is having an "Investing in Good Deals" conference on December 13th and 14th. One of the workshops is digging into community power and how to move investment in this area. You can check out the program and register here http://socialfinanceforum.eventbrite.com.
Bursaries are avialable for Nonprofits and social enterprises.
It would be great to have supporters of solarshare at the conference.
Financing the next stage of Innovation
The SolarShare proposal is about the future and how to finance the change the world needs - encouraging the purchase of these kinds of bonds is a great idea and makes me think that parents might consider buying these for their children. It is this kind of PSA or commercial that would be great to see on TV!
Some sort of a video or infographic as well as a PSA that give people the option of participating. We wonder too how mainstream financial institutions could get involved if they are not already.
Transmission corridors, anyone?
This proposal provides great integration between business ideals and environmental purpose - a great social venture. It helps build renewable energy in Ontario and could be applicable to other energy systems and approaches, too (see ZooShare!)
For now, this is a big first step with lots of nagging details to iron out - Go TREC Go! But again, this is just the beginning - I recall a community power conference a few years ago detailing a community in Europe that was fashioning a collective to build, own and rent our supplmentary transmission corridor space - now we're talking.
The ClimateSpark Social Venture Challenge is a project of:
Our sponsors:
Solarshare
This project leverages a lot of private money to deal with climate change while some governments delay or cut back on funding.