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How Do Northern Solar Bonds Work?
Green Timiskaming Co-operative is a renewable energy co-operative that is promoting and investing in local green energy projects. It has received approval for ten solar energy projects totaling 4 megawatts that will be built between 2015-2017. The co-operative is offering Northern Solar Bonds to raise $2.5 million from members to fund 51% of the capital costs and become majority owner. Bonds are available in 5-year terms paying 4.5% annually or 20-year annuity bonds with rates from 5-12.75% over the term. Funds raised will finance solar energy projects that provide clean energy and local economic benefits.
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How Do Northern Solar Bonds Work?
- 2. Who We Are AmbroseRaftis President, Green Timiskaming Development Co-operative 2
- 3. Who We Are Marcvan Beusekom Senior Development Consultant, Options for Green Energy 3
- 4. Who We Are A renewable energy co-operative (One of more than fifty in Ontario) 240 + members made up of your friends and neighbours Promoting and investing in a local green economy. 4
- 5. Northern Solar Bonds 5 5 YearTerm Bond Minimum Investment $500 Year 1-5 4.5% Principal Repayment At maturity Bonds Offered 20 Year Annuity Bond Minimum Investment $1,000 Year 1-5 5% Year 6-10 6.50% Year 11-15 8.25% Year 16-20 12.75% Principal Repayment 5% per year beginning in year 1 OR 10% per year beginning in year 11
- 6. What We’re Building GreenTimiskaming in partnership with Soventix Canada and Endura Energy received approval for ten “FIT” contracts from the Ontario Power Authority 250 kW Earlton Arena rooftop solar Nine 500 kW ground-mounted solar projects near Englehart Solar Energy Projects 6
- 7. Partnership Structure 51% OwnerOperator Regional Co-Op Developer Development and construction financing Not for Profit Co-Op development Partner Engineering, procurement and construction 7
- 8. Solar Power in Action 250 kilowatts output Lease agreement with Earlton Target date – completion by late 2015 Earlton Arena Project 8
- 9. Solar Power in Action Nine 500 kilowatt installations Each site is approximately 7 acres in size Lease agreement with land owners Target completion dates – 2015 - 2017 Ground Mounted Projects 9
- 10. Feed in Tariff (FIT) A 20 year power purchase agreement with Hydro One GT receives a guaranteed fixed price per kW hour produced Provides a reliable long-term income stream Solar Energy Revenues 10
- 11. The Clean Energy Industry CleanEnergy Jobs up 37% in 5 years 23,700 direct jobs in the sector in 2013 (surpassing the oil sands industry!) $6.5 Billion invested in 2013 (up 45% in one year!) The global clean energy transition is well underway and is now BIG BUSINESS in Canada! Foreign investment currently leading the way in Canada Green Energy Sector Growth in Canada 11
- 12. Local Benefits Local ownershipand accountability Investment and lease income Retain profits from our energy resources Hiring local suppliers and contractors Surplus revenues will be invested in additional economic development projects Generate long term employment opportunities Advantages of a Community Energy Co-Op 12
- 13. Northern Solar Bonds TotalCapital Cost: ~ $18 million Member Investment: require $2.5 million in bonds over next three years to fund 10 projects at 51% ownership $125,000 for Earlton Arena, $265,000 per Solar Garden Offering Statement for Bonds approved by Financial Services Commission of Ontario Bonds available on web site Investment Required 13
- 14. Northern Solar Bonds 20 Year Annuity Bonds 14 20Year Annuity Bond Minimum Investment $1,000 Year 1-5 5% Year 6-10 6.50% Year 11-15 8.25% Year 16-20 12.75% Principal Repayment 5% per year beginning in year 1 OR 10% per year beginning in year 11 Investment Opportunity
- 15. Northern Solar Bonds Repayment Option 1 Returnon Investment 6.64% average return on outstanding principal 15
- 16. Northern Solar Bonds Repayment Option 2 Returnon Investment 7.0 % average return on outstanding principal 16
- 17. Northern Solar Bonds Early Redemption Canredeem principal after 5 years provided replacement capital is available Rising interest rate over time makes bonds attractive to future investors Administrative fee of 2% to redeem principal if co-op provides replacement Fee waived if member brings in replacement member Redemption Terms 17
- 18. Northern Solar Bonds 5 YearTerm Bonds Competitive annual interest of 4.5% Entire Principal repaid at end of 5th year Minimum investment of $500 Option to renew at end of term may be available $12,250 returned after 5 years on $10,000 bond 18 Investment Opportunity
- 19. Northern Solar Bonds $165,000grant from Community Energy Partnership Program (CEPP) $67,500 in bonds sold so far in March 2015. (~50% of amount needed for Earlton Arena). Funds Raised to Date 19
- 20. Community Wealth GT surplusrevenues from Projects to be held by Community Wealth Non-Profit Community Wealth is the guarantor for member co-ops Surplus used to finance additional sustainable development projects Re-investing in Communities 20
- 21. Local Support Northern SolarBonds part of the new but growing “Community Bonds” alternative financing model Practical way to circumvent the banks and invest in beneficial and profitable social enterprises. Spread the Word about Northern Solar Bonds 21
- 22. How to Purchase a Bond http://greentimiskaming.ca/purchase_a_so lar_bond Review FAQ, Investment guide Download Offering Statement Fill out Subscription form Mail in form with cheque or completed Pre-Authorized Debit Form Northern Solar Bonds Now Available 22