Clean Technology Tax Credit (CTTC)

The 2023 Canadian federal budget introduced a new Clean Technology Tax Credit (CTTC) which allows for SolShare to get 30% of the cost of a solar energy system back from the government.


Recently the draft legislation for the tax credit was released. There is a requirement in the legislation that if “that if the property is leased by the taxpayer to another person, that person must be a qualifying taxpayer (i.e., a taxable Canadian corporation).”   In many cases on-site Power Purchase Agreements (PPAs) are considered a lease.   This means that we would not be able to do leases or PPAs with Government Buildings, non-profits, First Nations, unincorporated farms or business that are sole proprietorship.


You can offer by feedback by emailing Consultation-Legislation@fin.gc.ca  The Canadian Renewable Energy Association will also be meeting with the finance ministry in the next few days.  You can ask them to lobby for change by emailing Fernando
Melo <fmelo@renewablesassociation.ca>.


Here is what I would recommend for talking Points.


     • Please amend the Clean Technology Tax Credit (CTTC) legislation
so that if the property is leased by the taxpayer to another person,
that person may be not just a Canadian Corporation but also a Canadian
Government Entity (Federal, Municipal or Provincial), a First Nation
Government or Agency, a Canadian based non-profit, or Canadian resident
sole proprietor.


     • Also provide clarity that the lease requirement also applies to
on-site Power Purchase Agreements (PPAs).


     • The Clean Technology Tax Credit (CTTC) is meant to make Canada
competitive with the US and the US ITCs do restrict  leases and PPAs in
the same way that the current CTTC legislation does.

Customer Engagement with Solar PPAs

Photo from Pingala https://pingala.org.au

Community Owned Solar Energy PPAs offer a great opportunity for customers to engage with there customers and local community.

 

When the Young Henerys brewery in Australia decided to install a solar panel system on their building they hosted events for their customers and the public to learn more about the system.  You can read more about that project here:   That project was so successful they are doing a second project (see: https://pingala.org.au/younghenrys2/ ) and other breweries are following their example (see: https://pingala.org.au/caseys-brewery-joins-the-solar-beer-movement/)

 

January 2022 Dividend

SolShare Pays Investor Dividends for 8th Year
New Share Offering Coming in April

 

For the eighth year in a row, since establishing in 2014, SolShare Energy paid a dividend to our community of investors. For the period from January 26, 2021 to January 26, 2022, investors received $1.99 per C2 share, which was an annualized dividend yield of 4.0%.

 

SolShare Energy currently operates two solar energy plants in Vancouver. These plants are owned by our community of local residents, along with Vancouver Renewable Energy Cooperative, our operating partner.

 

A contract has been signed to build a third plant in the spring of 2022. In April there will be a share offering to raise capital for this plant. BC Residents will have the opportunity to become joint owners of this project for as little as $1,000 and receive annual dividends. If you’re interested in joining SolShare for our next investment, please join the wait-list at https://www.solshare.ca/contact-us/

 

About SolShare Energy

 

SolShare Energy is BC’s first community-owned solar energy investment program. SolShare’s mission is to enable investors to share in ownership of a diverse portfolio of renewable energy installations throughout BC that offer financial, social, and environmental returns. Solshare Energy is a project of Vancouver Renewable Energy Co-operative(VREC).

Solar PPAs on Government Buildings

Solar Energy PPAs on BC Government Buildings

Solar Energy PPAs (Power Purchase Agreements) on government buildings in remote diesel grid communities offer a significant opportunity to reduce greenhouse gas emissions and save energy.

 

Below is a draft letter to the BC Government encouraging them to adopt a policy for solar energy PPAs:

Subject: Request of a policy to support purchase power agreements for community owned renewable energy projects in rural and remote communities

Honourable Bruce Ralston, George Heyman, Ravi Kahlon, Selina Robinson, and Katrine Conroy,

 

We write to you today to ask for your support in strengthening the capacity of rural and remote communities to have resilient (secure, reliable, diversified) and renewable energy sources and in reducing green house gas emissions. We know this aligns with BC’s goals for energy supply per the guidebook on Clean Energy Production in B.C. (BC 2016). Supporting renewable energy in rural and remote communities also aligns with the goals of greenhouse gas reduction legislated in our Climate Change Accountability Act (BC 2017).

 

We request the BC Government to develop clear policies that will empower communities to move forward with renewable energy projects. Specifically, we request a policy to support renewable energy Purchase Power Agreements (PPA) for government-owned facilities on remote diesel grids, in British Columbia Hydro’s non-integrated areas.

 

Power Purchase Agreements are an effective way for the BC Government to reach its climate targets, decrease government expenditures, and local support electricity self-sufficiency. Under a PPA a solar energy( or other type of) system is installed on a government building at no cost to the government. The system is not owned by the government but they do use the electricity generated by the system. The system can be owned by the local community, increasing local buy-in, a local sense of ownership, as well as local jobs. This model has already been used in BC on non-government buildings.

 

The host would pay for the electricity produced by the solar service provider. The host would also still purchase any additional electricity needed from the utility. The goal for the solar service provider and the host would be that the solar energy be sold at a lower rate than the cost of energy from the utility, and so, save the host money. This PPA model has been approved by the BC Utilities Commission (BCUC 2015) and is supported by BC Hydro (BC Hydro 2021).

 

We are proposing this model be used in areas that are not part of BC Hydro’s integrated grid and rely on diesel power, in alignment with the Renewable Energy for Remote Communities (RERC) Program (BC n.d.).

 

In light of the above, it was disappointing to learn of difficulties associated with implementing these type of project. Two different BC government entities were recently approached about using this model. In both cases, they would not even consider the proposal even though it would mean both monetary and GHG savings at no cost to them. Both sites were in communities served by diesel power so the GHG savings would have been significant. The solar energy systems could have been partly or completely owned by local indigenous communities. Having guidelines or policies for installing PPAs withing the RERC Program is necessary for facilitating community initiated renewable energy projects.

The province of Alberta recently signed an agreement for 94 MW of solar through a PPA (Renewable Energy World 2019). The Alberta project is a “front of the meter” PPA sometimes called a Virtual PPA. In BC the PPAs would generally be behind the meter which has some advantages. As far as we know BC has not explored the solar PPA option.

For all of these reasons, we the undersigned ask the BC government to develop a policy that encourages government departments to pursue community-owned solar PPAs in rural and remote communities, and at sites where there is a good financial and environmental case.

Sincerely,

SolShare Pays Investor Dividends for 7th Year

For the seventh year in a row, since establishing in 2014, SolShare Energy paid a dividend to our community of investors. For the period from January 30, 2020 to January 26, 2021, investors received $1.98 per C2 share, which was an annualized dividend yield of 4.0%.

 

SolShare Energy currently operates two solar energy plants in Vancouver. These plants are owned by our community of local residents, along with Vancouver Renewable Energy Cooperative, our operating partner. A third plant is planned for 2021 and we are in early negotiations for more solar plants that will be located throughout BC. It is anticipated that future plants will also include Indigenous ownership. SolShare makes it possible for the general public to invest in community power projects for as little as $1,000.  If you’re interested in joining SolShare for our next investment, please join the waitlist.

 

About SolShare Energy

 

SolShare Energy is BC’s first community-owned solar energy investment program. SolShare’s mission is to enable investors to share in ownership of a diverse portfolio of renewable energy installations throughout BC that offer financial, social, and environmental returns. Solshare Energy is a project of Vancouver Renewable Energy Co-operative(VREC).

Our Response to Michael Moore’s Film “Planet of the Humans”

On Earth Day Michael Moore released a film entitled “Planet of the Humans.” It has been widely viewed and created much discussion.


As others have pointed out there are many errors in the film. We would like to specifically address some of the statements about solar energy and how they relate to our work in the BC context.


Early in the film, there are shots of a solar energy array that is producing power at 8% efficiency. The solar panels shown are amorphous or thin film. Others have pointed out that this scene was filmed several years ago. However, even at that point in time, very few solar installations were using this type of panel. Most used crystalline panels which were about twice as efficient. All of the installations we do use crystalline panels which are now at 18-20% efficiency.

During that same scene, the claim is made that more efficient panels are much more expensive. In reality, the reason why so few thin film panels were installed is that the more efficient crystalline panels became much less expensive than the thin film panels.

Panels installed in 2005 and still producing.


In another scene, someone comments that solar panels last “10 years.” This is also false. The first photovoltaic module ever produced is now over 60 years old and still produces electricity. Almost all panels now come with a 25 year warranty. Panels on commercial sites in Germany have been producing power for over 30 years and are still at over 90% of their original production. The first installation our parent company VREC did in Vancouver is now 15 years old and still producing over 90% of the original rated power.


Another claim from the film is that the electrical grid requires fossil fuel generation to operate. This is just dishonest. Hydroelectricity and geothermal can be used as base generation. Iceland uses 100% renewable energy on its electrical grid. Several other jurisdictions are at, or close to, 100% as well.

The most significant misleading claim the film makes is in the life-cycle analysis of renewables such as solar. A claim is made that more greenhouse gases (GHG) are used to make the products than will ever be offset by their use. Numerous studies (and meta-studies) have, in fact, shown that over the lifetime of a solar energy system, it will have GHG emissions that are 90% less than that of fossil fuel generation. This is after accounting for the raw material extraction, equipment production, transportation and installation.


Even here in BC, which has a relatively clean grid electricity, solar energy can still result in a GHG reduction of about 50% based on life cycle analysis. For a more detailed analysis of this see:
https://www.vrec.ca/blog/2014/11/05/photovoltaic-energy-better-bcs-grid/


Even Richard Heinberg, one of the “experts” interviewed in the film says the film makes “silly mistakes” specifically about renewable energy. He also points out the film is inaccurate in its portrayal of some environmental organizations and their leaders.


It is a shame that the film gets so many facts wrong, because it does have a few good messages. It is true that we need to reduce consumption and not rely just on technology. Also there are valid criticisms of bio-fuels.


Others have written more details about what is wrong with this film. Here are few if you want to explore the issued raised by the film further:


https://heated.world/p/the-wheel-of-first-time-climate-dudes/

https://ketanjoshi.co/2020/04/24/planet-of-the-humans-a-reheated-mess-of-lazy-old-myths/
https://www.ecoequity.org/2020/04/why-the-planet-of-the-humans-is-crap/
https://350.org/response-planet-of-the-humans-documentary/
https://www.filmsforaction.org/articles/skepticism-is-healthy-but-planet-of-the-humans-is-toxic

https://earther.gizmodo.com/planet-of-the-humans-comes-this-close-to-act

Indigenous Owned Utilities in BC

A recent article in The Conversation discussed a proposal to change rules around Indigenous energy utilities.

Although this article makes several important points we think it confuses the current state of Indigenous Utility ownership. Currently Indigenous communities can run clean energy utilities. And several do. They can also create new utilities. The problem is those utilities are limited in what they do. For example, they can engage in generation but are limited in what they can do with transmission or distribution. In BCH rate Zone 1 they are limited in size (but not in Zone 2).

It also possible to set-up utilities that operate off-reserve but with limited scope.

As the article correctly points out Indigenous Communities should have the right to own and operate utilities that are not subject to the current restrictions.

But we should be encouraging Indigenous Communities to set up utilities (or take ownership in utilities like SolShare Energy) under the current rules as well as working to change the rules.

The Economics

It is also important to do the math. For many First Nations communities they would be better off economically operating or jointly owning a utility under the current rules rather than the expanded options in the proposed changes.

For example in Zone 2 communities it would be more profitable to operate a generation facility under the current rules than own distribution infrastructure which BCH currently subsidies. In Zone 1, First Nations could sell power at 50% more through a utility like SolShare Energy compared to a utility that sells through a re-opened SOP program.

Based on our calculations there are over $60 million in economic opportunities for First Nations under the current utility rules.

We are here to help

As a utility operating in BC we are currently planning 5 new renewable power plants. Our plan is to include indigenous ownership in all of these. Some are on-reserve and some off.

We would be happy to speak with Indigenous peoples about how they can take advantage of the current rules to increase indigenous ownership of renewable energy utilities in BC.

SolShare Pays 4% Dividend

For the sixth year in a row, since establishing in 2014, SolShare Energy paid a dividend to our community of investors. For the period from January 31, 2019 to January 30, 2020, investors received $1.99 per C2 share, which was an annualized dividend yield of 4.0%.

SolShare Energy currently operates two solar energy plants in Vancouver. These plants are owned by local residents who are part of our community of investors, along with Vancouver Renewable Energy Cooperative. We are in early negotiations for four more solar plants that will be located throughout BC. It is anticipated that future plants will also include Indigenous ownership. SolShare makes it possible for the general public to invest in community power projects for as little as $1000.

About SolShare Energy

Parc Elise Solar Array
SolShare’s Second Plant in Vancouver

SolShare Energy is BC’s first community-owned solar energy investment program. SolShare’s mission is to enable investors to share in ownership of a diverse portfolio of renewable energy installations throughout BC that offer financial, social, and environmental returns. Solshare Energy is a project of Vancouver Renewable Energy Co-operative(VREC).

Workers are Owners

The workers from local communities where we build solar energy plants not only get paid a salary but get paid shares that make them owners of the energy plant. That means that they will get paid dividends from the project for the rest of their lives.

This is just one of the ways our cooperative community ownership model encourages local ownership. The ownership is also open to other local residents, First Nation governments, municipalities, businesses and non-profits. The ultimate goal is for the entire plant to be be locally owned.

Local ownership and employment is just one of the benefits our solar energy plants bring to communities. For remote diesel communities it also reduces the pollution from diesel generators.

If you are interested in building a cooperatively owned community solar plant in your community contact us to learn more.

SolShare Pays $2.08 Dividend

SolShare Energy has paid a dividend of $2.08 per C2 share for the period from January 15th, 2018 to January 30th, 2019. This is up from $1.78 for the previous period and is an annualized dividend yield of 4.0%.

SolShare Energy currently operates two solar energy plants in Vancouver and is exploring opportunities to add additional plants throughout BC. The plants are owned by local residents who are paid the dividends. SolShare makes it possible for the general public to invest in community projects for as little as $500.

SolShare Energy’s Second Plant in Vancouver

If you are interested in investing in community solar energy with Solshare Energy, check out our FAQs page.

90243

kWh Generated

11223

Dividends Paid

Proudly powered by WordPress | Theme: Wpazure by Wpazure