SOLSHARES SOLAR LEASING VANCOUVER

                      
                              SolShares,  a solar panel leasing  SC--? 

VREC or is it VRE or maybe SolShares, all part of the greening of Vancouver with solar panels.

SolShares a Community owned renewable energy project.  

They claim 3.3% returns on one solar system already installed for a housing co-op and  41 cent dividends already paid  to shareholders. This was only installed and began operating in June or July of 2015?

Now they are looking for shareholders to buck up $67,000 for the next co-op housing solar system.

Lets look at the first $63,000  23kW solar system, that has paid  41 cent dividends and will return 3.3% to shareholders?

Vancouver receives around 1000 annual sunhours,  that 23kW solar system will make 23,000kWh annually if everything is perfect and nothing goes wrong. BC Hydro pays 9.9c/kWh for Net metered power. That would be $2300 annually.    They claim they are being paid 14 cents? it’s a little confusing because BC Hydro does have a stepped rate for power.    Remember this is a 5 year renewable at the same conditions lease, what happens if they don't want to renew?  Who pays to remove these?  For repairs, underperforming panels, cleaning the bird poop, leaves, dust and everything else that reduces power made?  Extra insurance costs?

The claims today are solar systems are being installed for $3/watt or less for a profit.  This system at that would cost $69,000.   The shareholders who bought into the SolShares model put up $63,000.  This went to VREC who supplied and installed the system.  So the system is all paid for.  The system will save the housing co-op somewhere between $2-$3000 on their electric bills.   How much is 23,000kWh annual power?  BC Hydro statistics say the average home uses 11,000 kWh/yr., so this system makes the equivalent power for 2 average homes annually.  They say they read the meter every 3 months and distribute the earnings to shareholders?   Apparently they have already paid a 41c dividend to shareholders, the expected return to shareholders will be 3.3%.

The risks associated with solar panels underperforming, roof leaks, insurance premium increases due to their installation which is already happening in other jurisdictions as well as fire departments only containing fires on building with solar because they cannot be sure the power isn't off.   For something that won't reduce GHG in BC only increase GHG.  I foresee a lot of problems, inverters typically last only 10 years, that will be another $6-10,000.   Defective solar panels?  The largest solar project in Canada in Sarnia suffered major solar panel delaminations and failures, one large California project suffered a 34% failure of panels. No statistics are being kept but the word is a lot of Chinese solar panels are failing prematurely.  The warranties typically 3-5years of workmanship.  They claim they will still make 80% of their original power in 20 years, this generation of panels hasn't been around to prove that, many studies show early losses up to 5% annually in power production and greater.  And who ya gonna call in 20 years to claim on a warranty?

 What does make sense is the prospectus from SolShares states “this is very risky” “you might lose all your money”.

They mention the BC Securities Commission, auditors, etc.  But the shares are being sold without filing a prospectus with the BC Securities Commission,  as they state.

 "SolShare plans to sell shares to the public through the offering memorandum exemption, which allows firms to sell securities to anyone.

The VREC  principles who appear to be all the same people as SolShares, clearly spell out they have no responsibility if anything about the SolShares lease goes wrong etc.  The words Community owned, co-operative,  not really, leased and owned by the owners of VREC.

The 5 year lease states it can be renewed for another 5 years with all of the same conditions.   Would that require another $63,000 from shareholders?

    $63,000 - about $12000 in power, over $50,000 to make power for the equivalent of 2 average homes for 5 years, and no GHG reductions.   If anyone suggests this will help mitigate future hydro increases, most power is consumed in winter, the solar power for November through February, maybe 10% of annual.  This isn't going to help mitigate future energy costs increases.  

And BC Hydro is required to pay full retail for all solar power, a subsidy from all of us, BC Hydro makes power for about 3 cents/kwh.  Solar is a political feel good greenwashing waste in BC.

                   VREC's Mandate Is To Reduce Green House Gases

              The only green I see is that going into the back pockets of VREC for selling solar systems.

Of course there is the other side that I have not been able to discover any statistics about, that would be daytime power sales via the BC US intertie.  How much BC power might be sold to the US on a sunny day from about noon till 3 the only time solar power is made.   Unless all of BC Hydro excess power is sold, any solar sales would be at the expense of sending the cleanest and greenest power, waterpower over the dam pretending this is decreasing GHG's.  Forcing BC Hydro(us) to pay full retail for any solar power, while the spot market for wholesale grid power is nowhere near retail.   Aren't we GREEN

Would anyone suggest BC residents should put solar panels in BC to save GHG in California?  Thats what it amounts to, or let California buy their carbon offsets and pay for our BC solar panels we send them their power for our GHG reduction.   But then wouldn't it be just smarter for them to put these solar panels where the sun does shine?  

 Arizona has a non resident program, one can have the solar panels where the sun does shine.   

If there are any thinkers out there, send your solar panels to Arizona, take a picture,  put the pictures on your fridge, maybe take a trip down to have a look at them,  stop wasting my and the public's money on any more BC solar panel feel green nonsense.

Does anyone think BC residents have greater priorities at home than pretending to be Green with solar panels sending power to California, from where the sun doesn't shine to where it does?

I think that takes care of any argument that BC solar panels are making GHG reductions by transporting our solar power south to where the sun actually does shine a lot.

                                             SolShare investor package
                                               VREC website 


UPDATE October 2017 

I see the latest Bull@##$$%  from these people.


My comment will likely never see the light of day its pending moderation, all my comments never get printed.

So now they claim Present ROI 3.6%  Possible ROI 7%, yet under the column of
Return of Capital POSSIBLE??? ,,,, hello,  Return on investment 3.6% possible 7% yet return of capital is only POSSIBLE? 

Using the famous accounting techniques

EBITDA, that widely-touted measure of company performance and indicator of value otherwise known as earnings before interest, taxes, depreciation, and amortization, is a fairy tale told to investors and credit managers so that they go to sleep happy instead of running for the hills

Why did famous billionaire investors Warren Buffett and Charlie Munger refer to EBITDA as "BS Earnings"? 

https://www.forbes.com/sites/tedgavin/2011/12/28/top-five-reasons-why-ebitda-is-a-great-big-lie/#2f780c71d2da

HOW DID THIS EVER QUALIFY AS AN RRSP INVESTMENT????????

The numbers we know, or what they tell us,  capital cost $69,000.

Somehow they conned a building into paying them something like 14c/kWh for power they likely could have, should be, paying less than 10c/kWh for, its not green, they are told its green.

No solar grid tie PV power in BC a waterpower province can be green, its dirty power.  Nothing competes with clean green waterpower.  Unless the solar could avoid the burning of some non renewable like coal, it can never be green, in BC we are all clean green waterpower.

So $69,000 at 3.5% for 25 years is $4140/yr.     Their 23kWp system in Vancouver might if everything is perfect make 23000kWh annually at 14c/kWh = $3220.

BC Hydro makes that same power annually for less than $700.  They are getting $3220!  Don't think they have attracted anyone else yet.

They are RRSP eligible?  Pay dividends?  What is going on here?

Vancouver Renewable Energy Co operative

          Recently in the news and attempting to get the city of Vancouver to make it easier for permits etc., to allow everyone to put solar panels on their homes.              

                            Vancouver Renewable Energy Cooperative,  

Its difficult to determine if this is a co operative or a business.  Their description of their cooperative is every one shares equally in the work and profits?  I think the term Co-operative suggests something else to everyone that might get involved with them.

 The same principles involved with SolShares doing the leasing program, and Vancouver Renewable Energy, a business?   All interrelated, SolShares prospectus does say one "could lose all their money"  and its "a risky investment", buying shares.  VREC  does all the installations but clearly state they have no obligation, financial or otherwise in anything that may or could go wrong or not meet expected results from the SolShares business/co-op- whatever it is.

Solar Panels in BC will increase GHG’s not reduce them.

The  VREC/SolShares  recent news  on TV made  it appear that solar was to be the saviour to future energy requirements and GHG reduction in BC, nothing could be further from the truth.

This requires an understanding of how the grid power in Alberta mostly from coal and gas is so different from BC where power is clean green hydro power.

VREC mandate is to reduce Green House Gas, in BC no solar panels decrease any GHG. Solar panels don't fall out of the sky, they take a lot of non renewables to make and transport, to somewhere where the sun doesn't shine?  Solar panels might last 25 years, but makes less power every year with age and become toxic waste.

The graph below in Red shows how Alberta power demand reduces at night, they cannot shut down their non renewable energy plants quickly, BC takes that unused coal power in Blue, from around midnight till morning.  No solar panels in BC work at night that I know of, there is no GHG reduction from BC solar.

Because BC doesn't take Alberta power in the day the only time solar works if its sunny.....read link below.

http://www.blog.ze.com/2014/11/power-trading-dynamics-between-british-columbia-and-alberta/

Alberta can’t shut down their coal and gas plants quickly as can hydro, their power is either wasted or sold to BC.  BC buys it in off peak hours (at night) for 2.6c/kWh saving our water in our reservoirs.  Alberta buys our  green hydro power back when demands(daytime) require more power,  10.4c/kWh.    BC hydro is a net exporter of power, to BC’s advantage, receiving almost 4 times more for our hydro power.

The solar promoters in BC would have everyone believe we are buying coal power and BC solar panels will help reduce the GHG’s.  The opposite happens, solar only works in the day, it has nowhere to go to reduce GHG’s, and if BC did not take Alberta coal power at night, this would be power wasted and really increase GHG’s.

Alberta has stated by 2030 they will have shutdown their coal and gas plants.  Site C will be on line, BC will be clean green hydro power with power to export, probably to Alberta, they will have a hard time replacing all that power no longer made from coal or gas.   Public money or any money spent on solar power in BC is misguided and misinformed greenwashing.

The Nelson Community Solar Garden will Increase GHG's

               The Nelson Community Solar Garden has no benefit to Nelson or the world and any
                                                                 GHG reduction, it will in fact increase GHG's.


For the only city in BC with its own clean green water power dam making the city a profit, Nelson should be the last city to involve itself with solar power.

To understand why solar is a complete waste for Nelson one has to understand how solar works here daily and annually.   These images will help you understand.

                              The Above Graphs show how solar is out of sync with daily demand

        The above graphs show how solar power is out of sync with annual power demand.

           $613                          $211                       $420

See text below for explanation of these $ values

The community solar garden won't make enough power for 4 average homes annually.  From November through February it won't make power for 1/2 an average home annually.

Using the consulting engineers own numbers for the 50 kw community solar garden the real value of the solar power is as follows.    When we buy the most excess power, winter obviously, solar is next to worthless, but as Mr. Love manager of Nelson hydro told me, solar is a credit against the purchase of our excess power.  Last year it was $6.4 Million dollars.   As you can see this $400,000 plus solar garden might appear to earn ($613 + $420) ~$1000 applied against power purchases, but its again another loss.   All of this solar power is the lost income from selling 4 cent wholesale Fortis power for 10 cents.  That would earn us $2582. Again solar is a lose-lose in every way.     In summer when our dam makes all our own power and we have excess for sale, unless we sell all our excess first it is worthless, if we do in fact sell it, BC Hydro buys 90% of our excess power for 0.7 cents per kWh, that would make the solar power worth  $211.  Its unlikely Nelson hydro is selling any power above and beyond its 16MW capability mid day in summer.  Power might be sold during power peaks, morning and evening when solar isn't working.

GREENHOUSE GAS REDUCTION

There will be NO
GHG reduction with the Nelson Community Solar Garden.   Unless this power is actually used and enters the grid to avoid the burning  non renewable fuels in a conventional power plant using coal or gas, there is no contribution to the world's saving of green house gas from the Nelson Community Solar Garden.

I would Like Mr. Love manager of Nelson hydro to provide the calculations that will show how the Nelson community solar garden does anything to reduce GHG's, I am saying it will only increase GHG's.

Solar panels don't fall out of the sky, many studies say they won't replace the non renewables required to make them in their lifetime.   Solar panels from China, using coal from Fernie, shipped in diesel trains to bunker oil ships onto diesel trains to pollute chinese childrens lives in their coal fired power plants heating diesel mined and transported raw materials to over 3000 degrees melting silica sand  for solar cells and metal ores for frames to make solar panels.   Then return shipped to Nelson where the sun doesn't shine and the power can't be sold, so the city can pretend to be  "green".

I think this project was ill conceived by people who don't know what they are doing and now they can't undo what they have done.

Nelson is supposed to be the envy of all according to the contractor hired to deliver this program. 

Its been advertised as everyone will get a "credit" who buys into the project.

The term "investment" is continually being used!

It was first offered as only $25,000 from Nelson hydro all future funding to come from those opting in, I asked when or how this changed, Mr. Love wouldn't answer me.

So far the hired consultant has been paid $70,000, they bought their own data collection equipment software and installed it when I showed Mr. Love years of solar data for Nelson, he told me he was an engineer and my data was irrelevant.

I asked why the city doesn't put our a request for proposals and hire people with an expertise in the discipline of the project.  Their answer, they are happy with the person they have and its about continuity and they don't have to advertise.  The contract is coming up soon, another $70 or $80,000, but this time there is some truth to continuity,they will be selling the solar panels for the Second community solar garden.   How's the budget coming city councilors?  Is there anyone looking for half a million?  Solar panels for philosphical political reasons are more important?

I asked for the calculations to support the contractors statement the solar garden power will reach parity in 7 years and Return on Investment in 10 or 12 year.   I didn't get an answer.

The project is up to Revision 5 and no longer in a place that is visible to all as intended, how much was the consulting engineers bill, and where was the due diligence that prevented all 5 or more city visible city locations from being secured first?

Some of the responses I have had from city councillors,

"too bad you can't be forward looking"

"thats just your opinion"

"its not that much money"

"everyone else is doing it"

"it doesn't cost anything its paid for by Nelson hydro"

that from a 9 year veteran councilor--very scary

The project was presented to the BC Utilities Commission as only $25,000 from Nelson hydro all future funding to come from those opting in,  I have their response letter from my complaint confirming this.  Now you and I are in for more than half, those buying in get to pay what we will end up paying plus their buy in so they can feel "green"   I say they should pay  what was supposed to be all the costs beyond the wasted $25,000.

Nelson Hydro dam on the right

Pretty soon 200 or more solar panels, although they won't be seen unless you drive on the backroad.

The mayor said our dam was our "golden Goose",  seems like they are shooting it.  Every kW of solar in a Nelson hydro served area, rural or city, is at the expense of  lost income to the city.

The contractors says the solar garden isn't about a pressing need for power its about starting a movement!

How many solar gardens do you want me to pay for?   Hypothetically Nelson could have every house in town with solar panels, the city depends on this profit of selling 2 cent power for 10 cents.   Now we can look forward to paying for the solar garden and coming up with the extra funds to make up for the lost profit of our own hydro power sales.   This mayor and council will be remembered.

I can only show my grandchildren I tried.  My pension went up 1.2% this year, not sure how many more years I can afford Nelson.  I am hoping for better management that makes business decisions, so far this project comes from the highest paid person in the city who appears to be getting $10,000 more every year from city council.

They are now selling solar panels for the second solar garden, buy some, if you feel like I do, let city council know email to the link below, it goes to the mayor and all councilors.

Contact the mayor and city council here

How many solar gardens can we afford?  

There is no GHG reduction.

There is the lost profit from selling Fortis 4 cent power for 10 cents

Even if Nelson were to sell all its 16MW around noon on a hot sunny summer day, the solar would only be worth what BCHydro pays for our excess  0.7cents/kWh.  

There isn't likely a more absurd greenwashing project anywhere.