• RBC will purchase renewable energy certificates from participating community solar projects under 10-year agreements.
• The program is designed to improve project economics for local organizations while helping RBC reduce emissions from its own operations.
• Initial projects in Manitoba and Prince Edward Island will add more than 320 kilowatts of installed solar capacity.

Royal Bank of Canada has launched a national community solar program designed to provide long-term revenue for local organizations developing renewable energy projects.

The RBC Community Solar Program will use 10-year agreements to purchase renewable energy certificates, or RECs, from participating organizations. The additional income is intended to improve the financial viability of solar installations while lowering electricity costs for host organizations.

For RBC, the initiative also provides another route to address emissions from its own operations. The bank leases much of its real estate, limiting opportunities to install renewable generation directly across its property portfolio.

Long-term REC contracts support project economics

Community organizations often struggle to justify the upfront capital cost of solar projects, even where installations can lower energy bills over time.

RBC’s model adds a second source of financial value. Participating organizations can sell RECs generated by their projects to RBC under a decade-long agreement. Revenue can then be reinvested into operations, programs or other community priorities.

“We aim to strengthen communities across Canada and to lower our operational emissions by helping launch more locally sourced renewable power,” said Jon Douglas, Head of Climate Operations, RBC. “By tapping into RBC’s deep community ties, financial expertise and commitment to renewable energy, we can empower local organizations and make a difference together.”

RBC has committed to sourcing 100% of its global electricity from renewable energy. It is also seeking to support additional renewable generation and social benefits through its procurement strategy.

The community solar model addresses a structural challenge for companies with large leased property portfolios. Rather than relying solely on onsite installations, companies can support renewable generation elsewhere while purchasing the associated environmental attributes.

Manitoba project combines solar with workforce training

The program is launching with two participating organizations.

BUILD, an Indigenous social enterprise and non-profit contractor based in Winnipeg, Manitoba, is developing a 109.8-kilowatt solar installation.

The organization provides construction and trades training for people facing barriers to employment. Its solar project will also serve as a practical training opportunity for participants.

RBC Foundation provided additional capital funding for the installation. The project is expected to generate electricity equivalent to the annual consumption of approximately 12 homes.

“In true Winnipeg fashion, we are making every dollar do more than one job,” said Sean Hogan, Executive Director at BUILD. “The project will lower our operating costs, create training opportunities and generate additional value through the sale of RECs. Every dollar saved or earned can be reinvested into our people, our programs and creating greater opportunity in our community.”

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Holland College adds solar across two campuses

Holland College in Prince Edward Island has also joined the program.

The provincial community college is developing solar installations at its Prince of Wales Campus in Charlottetown and the Atlantic Police Academy in Summerside.

Together, the projects will provide 214.5 kilowatts of installed capacity. That is expected to generate electricity equivalent to the consumption of approximately 22 homes.

RBC Foundation also provided capital funding to support the installations.

“Holland College is proud to be one of the first organizations selected for RBC’s Community Solar Program. These installations represent an important investment in campus infrastructure in Charlottetown and Summerside and will deliver long-term operational benefits for the College. This partnership with RBC is both an investment in sustainability and in the students who will help build a stronger future for our communities,” said Natalie Mitton, Holland College President & CEO.

Corporate procurement expands beyond traditional PPAs

For executives and investors, the program illustrates how renewable procurement is expanding beyond large utility-scale power purchase agreements.

Long-term REC contracts can help smaller distributed projects secure predictable revenue while allowing corporate buyers to address operational electricity emissions. The structure can also connect climate spending with workforce development and community infrastructure.

The model will depend on project additionality, REC quality and transparent emissions accounting. Those factors are becoming increasingly important as companies face greater scrutiny over renewable energy claims.

For Canadian communities, however, the financial structure could help move smaller solar projects from proposal to construction. If expanded nationally, RBC’s approach could provide another corporate financing channel for distributed renewable energy while supporting Canada’s broader electricity decarbonization efforts.