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The Vancouver Renewable Energy (VREC) worker co-operative designs, sells and installs renewable energy systems. They are the leading installer of photovoltaic systems in Metro Vancouver and also sell and install other renewable energy systems including solar hot water, solar space heating and wind.
Out of interest in sustainability and seeing a similar initiative in Bellingham, Washington, VREC began in 2004. This worker co-operative has 10 members, 2 of which are full time, (Chris Diplock and Rob Baxter) and 8 others who work part time during various stages of a project. VREC has sold systems to residential, commercial and institutional clients including a public school that is showcasing photovoltaic panels for educational purposes.
One of the main challenges that VREC faces is that B.C. Hydro has one of the lowest electricity rates in the world. With this, solar and wind have a payback period of more than 50 years. With no government incentives, installing photovoltaic panels can be a tough sell. Clients do install solar panels for other reasons. Some are just interested in the technology, some do it for environmental concerns and others for Leadership in Energy and Environmental Design (LEED) certification.
VREC purchases some of their photovoltaic panels from a local manufacturer in Burnaby B.C. and the hot water solar panels from a manufacturer in Ontario. Interestingly, solar photovoltaic panels decreased 25% in price in the last year, whereas the price of solar hot water panels increased. The advantage of solar hot water panels is that they have a more reasonable payback (sometimes less than 15 years).
Although renewable energy is the wave of the future, the current market is small and seasonal and growing the business has its challenges. Many of the projects VREC has undertaken are still considered leading edge in this region so there has been significant media coverage of the business. VREC has found that mass consumer advertising is not effective for this niche market and most new clients come from word-of-mouth referrals.
VREC was set up as a worker co-operative because it was the model that best fit the values of its founders. However, VREC has found that often the public is confused by the term worker "co-operative". People often confuse the business for an advocacy group rather than a business.
VREC would like to see the B.C. government implement a feed-in tariff, like in Ontario, where the utility company buys your renewable energy for a higher than market rate. Hopefully the B.C. government will follow Ontario's example.
With an environmental crisis looming, worker co-operatives like VREC are in position to help people overcome one of the greatest challenges of our time.