FAQ’s

  1. Who is eligible to buy Shares?
    Answer:
    Shares are available to both the general public and any commercial entity in general.
  2. How much does each membership share cost and how many shares can I buy?
    Answer:

    1. $100 per share,
    2. Amount that can be purchased:  one share.
  3. What is the current status of the individual projects within the Limited Partnership?
    Answer:
    Eight projects are currently operating.
  4. What is the Limited Partnership for?
    Answer:

    1. The Limited Partnership generally has allowed LDREC to enter into an agreement with a third party (Grasshopper Energy) that developed the projects and needed a co-op participant for extra points in the FIT contract process.  The Limited Partnership holds contracts to build, own and operate generation assets with limited risk to the co-op. The Limited Partners of the Limited Partnership are LDREC and Grasshopper Energy.
    2. The limited partnership has assigned the responsibility to build, operate and maintain the assets to Grasshopper Energy.
    3. Grasshopper Energy is acting as the General Partner and responsible for the overall performance of the projects.
    4. The Limited Partnership Agreement provides for the LP to pay the co-op a 14% return based on the amount of capital the co-op invests.
  5. What are the primary risks to revenue that we, the co-op take?
    Answer:
    An SPN affiliate as the operator takes the construction, maintenance and operation risk. We get a 14% return based on our capital investment.  Our risk over time is greatly reduced and limited to such items as force majeure, such as if the sun doesn’t shine as an example.Should SPN fail to manage the operation to extent that they cannot fund our 14% then we can audit their performance and seek corrective actions.
  6. Why are co-op shareholder returns different to returns from those gained in the limited partnership?
    Answer:
    The 14% return is the amount that LDREC receives from the Limited Partnership.  LDREC must pay its expenses before dispersing income to the shareholders. As this is the co-op’s first set of projects, the co-op has to pay for all the overhead of the co-op: accounting, financial audits, insurance and other operating costs. As we add other projects within the co-op, then these costs will be spread across a greater income base, effectively reducing the overhead cost per share.
  7. Are the shares eligible for RSP tax credits or a Tax Free Savings account?
    Answer:
    The CRA has not made a ruling on this. We recommend that you talk to your investment advisor.
  8. What happens if the capital needs go up or down from current projections or if any of the individual projects do not go ahead?
    Answer:
    The co-op is a limited partner with a contracted 14% return based on the capital we invest into the partnership. Any increased capital or reduced capital need by the Limited Partnership will increase or decrease the amount of cash return but not the % return.
  9. What percentage of the dollars spent for the projects is spent in Ontario?
    Answer:
    The current projected percentage of the installed cost is expected to be in the order of 70 %.  This covers such items as: Roof racking, the supervisory control system, transformers, engineering, construction labour, legal expenses and project management.