New co-op buys into solar power project

Finding potential sites is the first step in realizing a major solar power project that is guaranteed to pay dividends for investors.

A new Sudbury community co-operative group is spearheading a project to develop solar power generation and feed it back into the grid, according to reThink Green vice-chair, Arik Theijsmeijer.

The co-op has set a potential price tag of $1 million to set up its project, an idea that stemmed from an Oct. 27 seminar hosted in Sudbury by the Ontario Sustainable Energy Association (OSEA), where it demonstrated to those in attendance how straightforward it can be to develop a project with new online software designed specifically for this task, Theijsmeijer said.

Earlier this year, OSEA announced the province-wide release of SolarShare Community Solar Bonds, $1,000 bonds that earn five-per-cent annual returns over a five-year term. It's a program initiated by the province to support renewable energy and energy conservation under the Green Energy and Green Economy Act. Money is invested in a portfolio consisting entirely of solar electric power projects across the province, projects that are already constructed, producing power and generating stable long-term revenues.

SolarShare bonds enable socially conscious investors to participate in an environmental initiative that positively impacts communities throughout Ontario, according to OSEA's website. In an emerging "impact investing" market, where returns are measured not just by economic, but also social and environmental benefits, SolarShare projects provide local economic development, generate clean, safe renewable energy that tackles climate change, and pay a competitive rate of return to investors.

It was an idea that was easy to buy into, because of the benefits it promises to the community and the rate of return it guarantees investors, Theijsmeijer said. The local co-op, which is currently made up of about a dozen people, was formed in an effort to see more renewable energy projects in the city that will complement those already here. It also doesn't hurt that the province provides 90 per cent of the funding to establish those co-ops, Theijsmeijer said.

“We believe $1 million is a reasonable target for this city,” he said. “It's all dependent on investors, but these co-ops are really taking off across Ontario, and they are really well supported.”

As such, not only is the group looking for potential sites, but it's also looking for partners to invest in the project. Theijsmeijer said he anticipates a total return of about $150,000 a year for 20 years.

“This is a different way of investing money that comes with a very strong guaranteed rate of return,” he said. “It's a lot better than you would get with other investments. The financial return speaks for itself, and it's a win-win for everyone. We believe there are enough individuals in the city who are ready for this kind of investment.”

The more local interest the group can garner for the project, the easier it will be to keep the benefits in Sudbury.

As for a site, there are plenty of potential ideas right now, Theijsmeijer said. The group wants to the site to be somewhat visible to the public, but in a location that won't bother anyone. In addition to investors, the group is interested in partners with major buildings or appropriate land who would be interested in playing host to the solar power project.

“A site has to work technically, meaning being south-facing without shading, and having the structural strength and a good state of roof repair to hold the panels.”

It also has to work from a social standpoint, he added, meaning it can't use good farm land and it needs a willing landowner partner who is committed to the project. It will take about 18 months for the project to be fully up and running.

Anyone with site idea or who might be interested in investing in the project can email [email protected] or phone reThink Green's office at 705-674-1685.

Posted by Laurel Myers