80 cents per kWh for solar energy in Ontario

[Rob Beckers]

The Ontario Power Authority is proposing a feed-in tariff of 80.2 cents/kWh for rooftop photovoltaic installations under 10kW in size (http://www.powerauthority.on.ca/Page.asp?PageID=122&ContentID=6858). There are multiple rates, going down from rooftop solar to 44.3 cents/kWh for large ground mounted solar arrays up to 10 MW. The contracts will be for 20 years, just as they are under the Standard Offer Contract.

There are rates for other renewable sources as well: For wind the proposed rate is 13.5 ct/kWh, while water power rings in at 12.9 ct/kWh. Hydro and biomass power will also enjoy a 35% premium in rates when feeding from 10am - 7pm (peak hours), though it is not clear of the proposed rates already include this premium or not. Note that these are proposed rates, right now there are discussions going on with 'stake holders' and all of this is not permanent yet. The OPA has a backgrounder as well (http://www.powerauthority.on.ca/Storage/96/9154_FIT_BG_March_12_09_FINAL.pdf). The proposed rates are part of the Green Energy Act, which has yet to pass the Ontario legislature. If passed, the OPA expects to get the new program up and running later this summer.

If the proposed rates come to pass, especially for solar, this will be a game-changer for the renewable energy business in Ontario (and as you all know I am involved in that as well). Those rates are on par with the German feed-in tariffs. Over there it resulted in Germany becoming the world's largest buyer of PV modules, and the installation of PV arrays on just about anything that faces south. Will we see the same happening in Ontario? :)

-RoB-

[Rob Beckers]

It looks like the Green Energy Act for Ontario was passed on May 14th (http://www.greenenergyact.ca/). More information at this link (http://www.greenenergyact.ca/Page.asp?PageID=924&ContentID=1259).

I am not plugged into politics enough to figure out if this indeed means it is a done deal now, and implementation begins. Maybe someone more knowledgeable can comment. If this is indeed the green light we are looking at 80.2 cents per kWh for rooftop solar!

-RoB-

[Rob Beckers]

There's a nice article in Renewable Energy World about Ontario's Green Energy Act (http://www.renewableenergyworld.com/rea/news/article/2009/05/could-ontario-be-the-next-germany?cmpid=rss). The article was written before the act passed, which it now has. The part I don't know is if the feed-in-tariffs that were proposed are set, or if these are still being determined or changed. In any event, it's an interesting read comparing Ontario with Germany.

-RoB-