In contrast to investment funds or the like, consumer (co-)ownership conveyed by a CSOP is not subject to capital market regulations. As a CSOP typically invests in only one local project and then – contrary to investment funds – operates the RE-plant, it is operationally active outside of the financial sector; with regard to the restricted group of persons targeted, i.e. the energy consumers living in the proximity of the RE plant, CSOP financing is also not a public offer.
In contrast to the YieldCo model, shares are not tradable in the financial markets. Furthermore, the CSOP-LLC will typically hold a control interest in the RE plant it administrates and operates.