By Keith Shakleton
Six years ago, the Ontario government set a precedent with the Green Energy Act, which allowed citizens to sell electricity back to the grid at attractive prices, through the Feed-In Tariff.
Many homeowners, farmers and businesses took advantage of this opportunity, which diversifies the sources of electricity and builds capacity for sustainable energy.
In late fall 2009, a group of local residents, including members of Sustainable Living Ottawa East met in a living room on Drummond Street, to discuss forming a co-operative, so that people who did not have their own solar generator could purchase shares in co-owned installations. The Ottawa Renewable Energy Co-op was incorporated in September 2010.
The group applied for approval from the Financial Services Commission of Ontario to issue preference shares. After considerable work on the details, they were the first co-op approved.
They issued their first share-offering in the summer of 2012, hoping to raise $500,000. A few weeks before their August deadline, they were unsure whether they would meet their goal.
If they didn’t, they would have to return all money received. By the deadline, they had raised just under $1 million.
The money was invested in five 10-kilowatt micro-FIT projects, three on local housing co-ops and two on non-profit housing owned by Ottawa Community Immigrant Services Organization. They also bought a share in a larger 250 kilowatt project in the Dunrobin area (still within the City of Ottawa).
Last year, OREC issued its second share-offering and raised $1.25 million, all from residents of Ottawa. The group used those investments to purchase a 75-kilowatt solar installation on the roof of Samuel Genest High School, which began production in July. They also increased their share of ownership in the Dunrobin project.
Now that the solar installations are in full production, OREC is able to provide dividends to investors. Over the 20-year lifetime of the FIT contracts, it hopes to provide an annual return of five percent.
Last November, OREC announced its third share-offering, with a target of $3 million.
The group has more than enough solar projects in the pipeline to utilize this amount of capital. Investment is open to any adult resident of Ottawa who becomes a member. Investments are RRSP eligible.
Solar installations will provide less than one percent of Ontario’s total electricity needs. So, they don’t make a significant impact on the overall price people pay for electricity. But they will make an important contribution to replace polluting coal and gas generators, especially at times of peak demand, such as hot summer afternoons, when they produce maximum output and when electricity providers may need to purchase power from other jurisdictions at high prices.
OREC’s goal is to promote and facilitate community investment in renewable energy. They encourage Ottawa residents to join them, to invest in local solar-electric installations, contributing to the energy needs of neighbourhoods—energy produced where it is needed—and making a reasonable return on investment.
For more information, check the website at http://ottawarenewableenergycoop.com/, or contact keith.shackleton@ottawarenewableenergy
