The Cooperative Arrangement
The following is a general description of the AGRIS Solar Co-operative:
- Each member will purchase a common share in the Co-operative.
- Each member will make a preferred equity investment in the Co-operative.
- The Co-operative will arrange the debt financing required and will own the solar units.
- Each solar unit will be placed on an eligible property of the member and the power generated will be sold to the Ontario Power Authority through the microFIT program.
- The member will be paid a license fee for the use of the land where the solar unit is placed.
- Each member will benefit from a return on his invested capital via profits of the Co-operative which will be shared proportionately among the members.
Benefits of AGRIS Solar Membership
AGRIS Solar provides its members with a logical alternative to either leasing his property to an independent solar developer or purchasing a solar generator:
- Benefits flow from BOTH providing (a small section of) his property and from ownership in the enterprise.
- Significant reduction in revenue risk based on diversified portfolio of locations
- Volume purchasing resulting in a lower per unit cost
- Advantageous terms for the commercial debt required
- Preferred terms and warranties for equipment installation
- Access to insurance and equipment performance guarantees
- Sharing of ongoing maintenance and administration costs
- Control and economic benefit stays with the owners of the Co-op and the local communities.