“Green” community bonds gather momentum in Ontario
There is plenty of good news happening around community bonds in my home province. SolarShare, for example, announced on Dec. 6 that it had been approved by the Financial Services Commission of Ontario to sell bonds (which offer a 5 per cent annual return) beyond a cap of $1,000. It is now selling up to $25,000, and can go even higher if requests are approved on an individual basis by their board of directors. This has opened up the possibility off pursuing projects more aggressively. The co-op is now going through a process to make its bonds RRSP-eligible. “Once an independent evaluation of SolarShare mortgages that secure your bonds is complete and we have received a legal opinion based on that evaluation, a self-directed RRSP account can be opened through Concentra Credit Union via the Canadian Workers Co-op Federation (CWCF),” the co-op reported in a recent newsletter. “You are also welcome to take that legal opinion to your own wealth management representative and request an account through other channels” — i.e. you can take it to your own bank and make a case for carrying the bonds in your existing self-directed RRSP.
These bonds are a safe investment, so if you’re tired of getting pummeled by the market and want a safe 5 per cent return, you might want to learn more at www.solarbonds.ca
SolarShare also announced this week that it has partnered with green energy retailer Bullfrog Power, which is helping to finance future co-op solar projects. As an investor, Bullfrog will also market SolarShare’s “solar bonds” to its existing network of green-minded electricity customers. It’s a great partnership.
Meanwhile, ZooShare Biogas Co-operative — of which I am on the board of directors — is making some solid progress with its plans to take animal poo from the Toronto Zoo and turn it into biogas that will be used for electricity generation. Ontario’s feed-in-tariff (FIT) program finally opened up again just today for small FIT projects, meaning projects like the one ZooShare is pursuing can now apply for a 20-year power purchase agreement with the province. ZooShare has plenty of members now, including the required number of Toronto property owners, so now we just apply to the FIT program and sit tight for a contract offer. As soon as that comes, it’s full steam ahead…
I’m really hyped about the ZooShare project. If we can show how it’s done, we can replicate the approach in zoos across North America. The pootential is huge, if you’ll excuse the pun. Like SolarShare, community bonds will also be offered for this project, promising a generous 7 per cent annual return based on current calculations. The fact that SolarShare has blazed the trail to get approval from the Financial Services Commission bodes well as we prepare to file our bond offer prospectus. That precedent, as well as the precedent being set for RRSP-eligibility, will also prove beneficial.