FAQs

• What is the SolarShare Co-operative?

  SolarShare is a not-for-profit co-operative corporation with the express goal of growing community-based solar electricity generation in Ontario by engaging residents and investors in projects that offer tangible financial, social, and environmental returns. Since 2010, SolarShare has been developing and installing solar power projects across the province. Now, through the co-op model, Ontario residents and businesses can enjoy financial benefits from investing in commercial scale solar energy projects through the purchase of SolarShare Community Solar Bonds. SolarShare is a project of the TREC Renewable Energy Co-operative

• Can SolarShare put solar panels on my house or property?

  We’re often asked this question! SolarShare does not develop smaller residential systems. Rather, we lease commercial-scale rooftops and farmer’s fields, finance solar projects, and work with developers to build them. Then we sell solar bonds in them so that the community can invest in clean energy.

  But we wanted to provide some helpful information for those of you who might want to go solar yourselves or would simply like to know your options. Click here for more information.
  
  

• How do I join and invest?

  Joining the co-op and investing in a Solar Bond is a simple process that you can do online today.

• How risky are Solar Bonds?

  Solar Bonds are considered ‘lower risk investments’ due to four factors: (1) secured by a registered leasehold mortgage, (2) guaranteed 20-year revenue stream, (3) diversified portfolio of projects instead of a single installation, and (4) no development or construction risk.

  1. The bonds are secured by the solar PV assets themselves and also a registered leasehold mortgage that is held by a trustee on behalf of all co-op members.
  2. Revenue risk is low since each SolarShare project has secured a 20-year Feed-in Tariff power purchase contract with the Independent Electricity System Operator, guaranteeing a market and a fixed price for all the power produced throughout the 20-year period. 
  3. Since SolarShare has a diverse portfolio of projects across Ontario, performance risk is spread across multiple projects and so there is less of an impact if one of the projects is performing below expectations.
  4. Bondholders are not exposed to project development and construction risks. SolarShare uses a model of private bridge financing to pay for project development and construction costs, and then the Solar Bonds are used to refinance the projects once they have reached Commercial Operation.

• Are Community Solar Bonds RRSP/ RESP/ TFSA eligible?

  5-Year Solar Bonds at 5% interest are eligible for registered plans like RRSP & TFSA.
  
  Right now there are 3 options for doing this:

  1) Through a Self-Directed RRSP or TFSA by working with your wealth manager, investment advisor, or discount brokerage firm. It is up to your advisor and the institution’s compliance department to approve a SolarShare investment and set any fees or criteria for investing. Interest is simple. Learn more >> 

  2) By opening up an RRSP/TFSA account administered by the Canadian Worker Co-op Federation (CWCF). They will hold the Solar Bonds on your behalf in an account with trust agent Concentra Financial. CWCF charges $55 per year to administer the account, additional yearly deposits are $55, and interest will compound. Learn more >> 

  3) By opening up a registered plan with Caldwell Securities Ltd (CSL). CSL can open self-directed registered accounts (RRSP, RESP, TFSA, and/or RRIF) that can hold Solar Bonds as well as other investment products. CSL charges $65 per year to administer the account, additional yearly deposits are free, and interest is fixed. Learn more>>

  
  
  
  

• Who is eligible to become a member?

  Investment in SolarShare is open to all residents and businesses in Ontario Canada, including municipalities, subject to approval from the Board. Based on Ontario Power Authority definitions, only "natural persons" can be co-op members. While businesses may invest, they cannot become members. Members pay a one-time membership fee of $40 to participate as an investor. If you move out of the province, your bond will continue to mature until your term is up, but you will no longer have a co-op membership. 

• Can I trade or sell my bonds?

  There is no market in which to sell or trade Solar Bonds, and none is planned. If a member chooses to sell or redeem his/her bond(s) within the 5-year term because of a circumstance of financial constraint, the Board will attempt to sell the bond(s) to another member, however the co-op cannot provide a guarantee of the sale.

• What is the SolarShare Offering Statement?

  The SolarShare offering statement is intended to provide full, true, and plain disclosure of all material facts and risks relating to this investment opportunity. Everyone who becomes a member and investor in SolarShare must read the Offering Statement prior to making a decision to invest. The Financial Services Commission of Ontario (FSCO), the regulator of co-operatives in Ontario, approved the renewal of the SolarShare Offering Statement in June 2016 (expires April 30, 2017).

• What is the minimum/ maximum investment?

  The minimum individual investment is $1,000 for 5-year bonds and $10,000 for 15-year bonds. There is no maximum. This will be periodically reviewed by the SolarShare Board of Directors.

• What are the details of the 20 year power purchase agreements for SolarShare projects?

  Each SolarShare project is backed by a 20-year power purchase contract with the Ontario Power Authority (OPA) now called the Independent Electricity System Operator (IESO). Projects over 10 kW have a Feed-In-Tariff (FIT) contract, and those under 10 kW have a micro-FIT contract. These contracts ensure a set price for the electricity and guarantee the purchase of all power produced for 20 years, resulting in a low-risk, stable revenue stream. SolarShare projects have reached Commercial Operation stage and are generating power and revenues under the contract. Visit the IESO website for more detail.

• How secure are Feed-In-Tariff (FIT) contracts in Ontario?

  SolarShare's current 20 projects each have a binding 20-year power purchase agreement with the Ontario Power Authority under Ontario's Feed-in-Tariff (FIT) program. These agreements have been entrenched into law by the Ontario government and changes in government do not affect the legality of these contracts.

• Does SolarShare accept credit cards?

  Credit card compliance policy prevents anyone in Canada from purchasing an investment by credit card. You can purchase Solar Bonds online via Electronic Funds Transfer. Learn more>>

• What is the business relationship between TREC and SolarShare?

  SolarShare currently retains TREC Renewable Energy Co-operative (TREC) for the management of its operations, specifically marketing, administration and future project development.

  TREC is reimbursed for new project development and related expenses through project development fees, as approved by the SolarShare Board, and a monthly fee to cover the ongoing administration of SolarShare’s daily activities.

  The SolarShare Board provides management oversight. All final decision-making authority related to material changes in the annual operating budget, business plan, and asset ownership rests with the SolarShare Board.
  
  Board members of both organizations receive no compensation for their board work.

• What is in my SolarShare membership package?

  Your membership package includes your bond certificate and a letter informing you how you can participate in the co-operative process.

• What happens when my bond matures?

  Solar Bonds have a 5-year term or a 15-year term. They are not meant to be sold or traded within that period. When the Solar Bond matures in 5 years you can request your principal back or reinvest at the new terms offered at that time. Prior to the five-year renewal, SolarShare will contact you to let you know your options. For 15-year bonds, by the end of your 15th year, you will have received all of your principal back. You are welcome to reinvest at the new terms offered at that time.
  
  

• Is the interest simple or compounded?

  5-year and 15-year bonds earn simple interest (you do not receive interest on top of interest). For the 5-year bonds, 5% is paid out semi-annually, and for 15-year bonds, payments are made semi-annually and they are a blend of both principal and interest. If you invest in an RRSP/TFSA through the CWCF, your interest will be compound. As of January 2017, over $2.4 million in interest has been paid out to SolarShare investors.
  

• What is SolarShare's conflict of interest policy?

  All Directors, officers, committee members and employees must carry out their duties honestly, in good faith and in the best interests of the co-operative rather than in their own personal interest. Directors are all familiar with the co-op’s conflict of interest policy and are required to state any potential conflict at the beginning of each board meeting. The conflict of interest policy also covers all persons in their households and all their relatives. All board members have read and signed declarations based on the policy. Read the complete SolarShare Conflict of Interest Policy and Declaration. 

• What is the SolarShare Investment Advice Policy?

  Disclaimer: SolarShare and its representatives are not investment advisors, and therefore do not provide investment advice or recommendations on the viability of investment products. The role of SolarShare representatives is to provide information about its projects, the Solar Bond terms, and to explain the membership/ bond purchase application process. For information about the risks associated with purchasing Solar Bonds, consult the SolarShare Offering Statement. It is prudent that all investors conduct their own thorough due diligence by reading this document. SolarShare recommends consulting an investment professional before making investment decisions.

   

  
  

• Community Power Capital: Providing the capital to finance the construction of projects

  A critical component of SolarShare’s business model and key factor to the co-op’s success is its relationship with Community Power Capital.
  
  CP Capital is a catalytic financier to the community power sector and lends SolarShare the development capital it needs to construct its projects. After the projects become operational, the funds remain in place until the projects are refinanced with Solar Bonds and long-term debt. This allows SolarShare to separate the financing in the riskier phases of development from the final operational phase, thereby reducing the risks to Solar Bond holders.
  
  CP Capital has raised and deployed over $12 million into low-carbon renewable energy projects. CP Capital is a co-op and its members are its investors, who are committed to helping finance the low-carbon economy while also increasing local community ownership. The members (or their representatives) that make up CP Capital include:
  
  

  • Brian Iler
  • Bullfrog Power
  • David Poch and Hilda Goldberg
  • David Robertson
  • Dianne Saxe
  • Glen Estill
  • Jocelyn Lovell
  • Judy Marshall
  • Llewellyn Smith
  • Michael Brigham
  • Thomas Haubenreisser

  CP Capital welcomes new mission-aligned and socially responsible investors to its membership. The minimum investment is $250,000 and members can expect to earn 5-7% annual return on investment. If interested in becoming a CP Capital investor, please contact [email protected].