Kitchener, Ont.-based solar energy solution provider VCT Group has received an undisclosed strategic investment from GrandBridge Corporation that will support the company’s growth and enable it to repay outstanding debt.

VCT Group provides commercial rooftop solar, commercial and residential electric vehicle charging, solar carports, operations and maintenance. It has a portfolio of more than 300 projects spanning across North America.

The company was founded in 2008 to develop small-scale wind and hydro projects. It pivoted fully into solar after the Ontario government introduced the Feed-In-Tariff Program, which offered guaranteed above-market prices to renewable energy generators for feeding electricity into the provincial grid, in 2009.

“We started in small-scale developments with trackers in the corners of farmers’ fields, did some residential projects for the first couple years and then, around 2012, we started to make our way into commercial-scale projects,” VCT Group president Brian Unrau told RENX. 

“We did some solar farms as well as some larger commercial rooftops.”

VCT Group launched its proprietary Heliostation solar carport system — which is engineered to withstand climates that experience rain, ice and snow — in 2019 to provide businesses and communities with a durable, cost-effective path to clean energy.

Investment in non-regulated energy providers

Most electricity local distribution companies in Ontario, such as GrandBridge Corporation, are municipally owned. 

“Generally it's been a regulated industry that has required rates of return and that’s been putting dividends back in those municipal coffers that help support the local budgets without having to raise property taxes,” explained Unrau. 

Forward-thinking local distribution companies are now becoming involved with non-regulated businesses to increase their growth rates and returns while also providing energy solutions to their customers. That was the basis for GrandBridge Corporation’s investment in VCT Group, and joining its long-standing group of private shareholders, according to Unrau.

“They've taken a minority share in the company for now, but the plan is to see where it goes and expand from there,” said Unrau. “It's setting us up to to grow a little faster and bring in more capabilities.”

Between the federal and provincial government incentives now available, Unrau noted that the return on investment for solar projects is the best it’s ever been.

VCT Group founded a renewable energy co-operative

VCT Group founded a renewable energy co-operative called CED Co-op as a separate and distinct organization in 2012 to help accelerate renewable energy development in Ontario. It has hosted more than 100 projects across the province.

“It's owned by its members, of which I'm just one,” said Unrau, who’s also president of CED Co-op. “The organization creates a portfolio, aggregates projects and opens it up for anybody in Ontario to be able to invest in and share in the returns.

“We've taken it through processes over the years so that all the investments can be held in registered accounts such as RRSPs (registered retirement savings plans), TFSAs (tax-free savings accounts) and that kind of thing.

“If there are people who don't want to put their own money into the solar on the roof or in the parking lot, then our co-operative can come in and own the asset, set up a power purchase agreement, fund it all, and then the building can still get the benefit of the renewable energy. 

“And generally, at scale, we can sell it to them cheaper than the grid rate and the co-op can still make its return on investment. It's sort of a win-win-win all the way around in that scenario.” 

GrandBridge Corporation

Cambridge, Ont.-based GrandBridge Corporation is a municipally owned investment holding company with 100 per cent ownership in GrandBridge Energy, GrandBridge Group and GrandBridge Solutions.

GrandBridge Energy is a regulated utility company that delivers electricity to 116,000 customers in the City of Brantford, the City of Cambridge, the Township of North Dumfries and the County of Brant. 

“As electricity demand continues to rise, driven by electrification and growth in our communities, distributed solar represents a practical and cost-effective option for adding new generation quickly while offering opportunities for customers to participate in the Save on Energy and Net Metering programs,” president and chief executive officer Sarah Hughes said in a media release announcing her company’s investment.

“We have been impressed with VCT Group’s dedication to developing innovative solar solutions, such as the proprietary Heliostation carport system, their customer-focused approach, and their strong connection to the communities where they operate. 

“We are excited to partner with VCT Group and look forward to expanding access to cost-effective and sustainable energy solutions that will benefit customers while helping strengthen our local electricity system.”

Current VCT Group projects

VCT Group is doing feasibility studies to incorporate rooftop solar installations in the 22 ONroute gas, food and convenience facilities on Ontario’s 400 and 401 highways.

The company is also working with an unnamed retailer, with about 15 stores, that’s considering solar panels for the roofs.

VCT Group recently installed Heliostation carports in a couple of community centres. It’s building them at a few multi-residential buildings and is partnering with an Indigenous group to develop one in Kirkland Lake, Ont.