Invest

Though our Offering Statement is closed, we still have opportunities to invest, supporting the development of renewable energy projects across Ontario. It’s important to us that our members and investors can continue to diversify their portfolio and earn strong financial returns on their investments.

Until our next Offering Statement opens, individuals can invest $1,000.00 per calendar year in our 3-year Bonds Series O1. This short-term bond offers better returns than your bank, while supporting local solar power projects.

Dependable Investments

CED Co-op invests in renewable energy projects, generating revenue by selling the electricity these projects produce to the grid through the Feed-In-Tariff (FIT) program. With 20-year electricity generation contracts, this revenue is stable and safe, delivering predictable returns for our investors.

Our projects are fully built, and are not impacted by the Ontario Government’s recent decision to cancel contracts for renewable energy generators who had not yet completed construction. We anticipate these projects are safe, and will be providing stable revenue for the duration of their contracts

Since our initial Offering Statement in 2015, CED Co-op has generated over $15 million of investment in solar energy projects. Don’t miss out on the latest opportunity for community minded, professional investment.

Backed By the Sun

The sun rises every day. Predictable hours of sunlight each year based on NASA climate data means that revenue for CED Co-op is safe. You also know exactly what your investments are funding – community power where the input is sunlight, and the output is clean electricity for Ontario. That’s something to be proud of!

Investments in CED Co-op strengthen and diversify your portfolio with returns that won’t be impacted by market fluctuations.

No Roof Needed

When your home isn’t suited for solar, or you have already installed a system, investments in CED Co-op are a perfect choice. You can support solar energy without putting panels on your roof.

Our systems are built in partnership with local businesses and feed energy into the Ontario energy grid. Your investment in renewable energy makes our grid a little greener, while delivering a financial return – it’s a win-win for you and the planet.

Investment Options

Our current investment option allow CED Co-op investors the opportunity to see their investments grow with strong financial returns. A high degree of liquidity allows investors with short time frames the ability to support renewable energy in Ontario.

Because we are offering these securities outside of a full Offering Statement, investors are limited to investing $1,000.00 per investor, per calendar year to a maximum of $10,000.00 over 10 years. Investments greater or less than this cannot be accepted. Investments must be non-registered.

Bonds Series O1

3-year bond with annual payments

Bonds Series O1 is a 3-year self-amortizing bond paying 4.50% interest.

This bond has been designed for the shorter term investor who is looking for predictable annual cash flows.

Payment Schedule

The payments of interest and principal of a $1,000 investment in Bonds Series O1 are outlined below.

Year Yield Interest Principal Payment Balance
1 4.50% $45.00 $318.77 $363.77 $681.23
2 4.50% $30.66 $333.12 $363.77 $348.11
3 4.50% $15.66 $348.11 $363.77 $ –
Totals   $91.32 $1,000.00 $1,091.32  

 

Investors must fill out the Offering Subscription Agreement, then submit it with payment to our office. Full instructions are in the PDF.

New investors should also fill out our Direct Deposit Form. This allows CED Co-op to make payments directly to your bank account. It saves you the headache of cashing a cheque, and saves the co-op time and money, allowing us to focus on our projects and returns.

Contact us if you have any questions about investing with Community Energy Development Co-operative.

Investment FAQs

General FAQ

Can I still invest in securities from your 2015 or 2017 Offering Statement, or purchase them from someone else (Class A Preference Shares, Class B Preference Shares, Bonds Series M1-5, Bonds Series L1-4, Bonds Series N1-5, Bonds Series P1, Bonds Series Q1, Bonds Series R1)?

No. Our Offering Statement closed, and with it the opportunity to invest in these securities. There is, at present, no market to buy and sell these securities among investors. CED Co-op may buy back securities as our financial plan permits. Please contact us for more information.

How do I make an e-transfer?
Every bank allows you to make an “Interac e-transfer” or “send money via email” from your account on their website to an email address. The specific actions and details will depend on you bank. Please contact us if you have any questions.
I'm moving out of Ontario. What happens to my CED Co-op investments?

Please notify us of any moves so we can keep your contact information up to date. You must be an Ontario resident in order to be a member of CED Co-op, so if you leave we will terminate your membership and refund your $10. You can maintain your current investments in CED Co-op, but will only be able to invest more if the next offering allows investment by non-members.

Can I transfer my investment to someone else?

Yes, you can transfer an investment to another person. The transfer must first be approved by the Board of Directors and is subject to a $75 transfer fee.

Can a business become a CED Co-op investor?

Yes. Although corporations cannot be co-operative members, they can purchase CED Co-op securities. Please fill out the Subscription Agreement, and be sure to include your Business Number instead of a SIN.

Can I gift CED Co-op securities to a child?

No, our securities cannot be gifted to a new or minor child. Membership in CED Co-op is restricted to residents of Ontario 16 years of age and older. In order to invest in CED Co-op, members must be 18 years of age and older.

Is my investment guaranteed or protected?

Similar to a mutual fund, this is not a guaranteed investment, nor is it protected under CDIC. The Co-op’s solar projects have Feed-In Tariff contracts backed by the Provincial Government through the Independent Electrical Systems Operator, for 20 years. The Co-op carries business interruption insurance to offset losses that may occur due to mechanical or weather accidents.

Can I invest in one type of account, then transfer it to another at a later date?

Yes, you can always transfer your investment to a different account. Please contact us in order to set this up.

What is the difference between “interest” and “dividend” income?

To put it simply, interest is the fee you get for loaning money to the co-op/ bank / government / company / person or whomever you lend it to. A dividend is the money that a company/ co-op pays out to its owners/ members.

Will I receive a statement of my account when a transfer of funds is completed?

Registered Accounts: CWCF sends out statements on an annual basis. Their year-end is September 15th. You can request a statement be sent at any time, however a fee may apply.

Non-registered Accounts: Once your investment with CED Co-op is finalized, you will be given access to Member Zone, our online portal to view your investment information. In Member Zone you can see the current value of your investments, update your profile information, access your T5, and more.

Convertible Debentures

When was my “Convertible Debenture” investment converted into Preferred Class A Shares?

All Debentures were converted prior to May 1, 2015.

Bonds

When will my interest be paid out and how?

Interest will be paid out on the anniversary of your bond purchase based on the schedule for each bond. For Bonds Series L1-4 this was after 8, 12, 16 and 20 years. Bonds Series R1 is paid after 15 years, or at the owner’s request. For all other bonds payments occur annually.

Payments are either mailed as cheques, sent as electronic funds transfer, or directly deposited in your account (for those banking with Kindred Credit Union) depending on which method you indicated was preferred. Due to maximum daily transfer limits, payments via direct deposit or electronic funds transfer may not be completed immediately, but will appear in your account in a few days. To change your method of payment, please contact accounting.

Shares

How and when will my dividend be paid out to me?

The Co-op Board decides when dividends are distributed. The Board reviews the financial performance of the projects and after paying out the Bond Investors, then a dividend may be declared. To date, the Board has paid a dividend quarterly for Class A Preference Shares in line with their 9% return. We expect the same frequency but a 7% dividend for Class B Preference Shares. Note that dividends are not guaranteed.

You will receive a T5 tax form recording the dividend paid out each year. You simply submit this form with your annual tax filing.

Dividends are either mailed as cheques, sent as electronic funds transfer, or directly deposited in your account (for those banking with Kindred Credit Union) depending on which method you indicated was preferred. Due to maximum daily transfer limits, dividend payments via direct deposit or electronic funds transfer may not be completed immediately, but will appear in your account in a few days. To change your method of dividend payment, please contact accounting.

When does CED Co-op plan to buy back Class A Preference Shares?

CED Co-op performed the first repurchase of Class A Preference Shares on December 15, 2017. We repurchased 2.17% of shares outstanding, rounded up to the nearest share for each individual’s holdings. The shares were bought back at their par value of $5. CED Co-op plans to continue repurchases each December in a similar manner so that our shares outstanding are reduced over the lifetime of our generation contracts.

The first repurchase of Class B Preference Shares is expected to take place in a similar manner in December 2018. Class B Shareholders will receive notification prior to the repurchase.

Registered Investments

Who do I contact for information about my registered investments?

While we can answer many questions for you, the team at CWCF is your best contact for statements for your registered investments, balances in your cash accounts from dividend/bond payments, and information about withdrawals. Contact Josh Dyke at CWCF.

What happens when I receive payments as bonds mature?

Payments for registered investments are made in cash into your CWCF registered account. This money can be withdrawn (a fee applies), moved to a registered account with another organization (a fee applies), or transferred to another investment within the CWCF.

Can I transfer a non-registered account with CED Co-op to a new registered account with CWCF?

Yes, you can transfer your investment with CED Co-op to a new registered account with the Canadian Worker Co-op Federation (CWCF). The CWCF will charge a fee for this transaction. Please contact us for more information.

When will my cheque (or transfer of my RRSP monies) be applied to my new Self Directed RRSP account?

Due to the great success and volume of investments we have received, we are finding it takes approximately 4-6 weeks to process the cheques and transfers. You will receive a statement from CWCF in the mail for your records. You can always reach us toll free at 1- 855-274-6890 to answer any questions you may have.

When will I receive a statement from CWCF?

CWCF produces their statements on September 16th each year (this date is based on their own internal audit, not a reflection of your CED Co-op investments). They will issue an account statement annually at this time.

I'm retiring. Can I invest funds from my pension?

This will depend on how your current pension company handles your funds. Upon retirement, some companies require that your funds be transferred to a Locked In Retirement Account, Locked In Retirement Fund, or similar. If this is the case, you cannot invest in CED Co-op. However, if you are able to withdraw from your pension and invest in either non-registered securities, or through a TFSA or RRSP, then we can certainly help. Please contact your pension provider to discuss your options.

CED Co-op Operations

What happens to the equipment after the FIT contract ends?

In most cases the equipment will be the property of the building owner following the contract. This was written into our lease agreements as a benefit of partnering with CED Co-op.

What does the future look like for CED Co-op with the FIT program not offering new contracts?

CED Co-op will continue to explore ways to support renewable energy in Ontario. New business opportunities may include acquisitions of existing projects, but will also depend on any changes to legislation governing co-ops, and the rules for Net Metering related to virtual Net Metering or third party ownership. Regardless of what the future holds, the funds raised through this Offering Statement will support our current plans, and these projects will deliver returns to investors as outlined.