Why Solar is Good for Ontario

August.26.2011

Why Solar is Good for OntarioThe solar industry has helped Ontario stay afloat during the financial slump. Private investment in the industry is expected to reach $12.9 billion by 2018. The success of this burgeoning industry is largely due to the province’s FIT and microFIT schemes. These schemes give incentives to home and business owners as well as farmers who set up solar arrays on their properties and sell the energy generated to the province at preferential rates.

A recent study showed that the solar industry had invested $2 billion in the province in 2011 alone, creating an estimated 8,200 jobs. A number which will increase to 11,400 in 2012 with 25 jobs created for every megawatt of energy installed by 2018, the solar industry is proving to be a real boon to the province.

Although many home and business owners are committed to switching to renewable sources of energy for the benefit to the environment, the FIT and microFIT incentives do make solar affordable to many who would not otherwise be able to install such a system. The ecoENERGY program provides rebates for the home owners who use solar technologies. These rebates are part of the government’s long-term energy plan which aims to reduce consumption by 14%.

Why Solar is Good for OntarioThe growing need for electricity will require the province to create new facilities and refurbish many of the old ones. By 2030, 70% of our electricity will be generated by new or refurbished nuclear facilities. The cost to the tax payer will be profound. Two nuclear reactors are already planned for the Darlington plant while 10 are being refurbished at Darling and Bruce power stations. The costs of these refurbishments will double hydro bills in the province by the time the project is complete.
Fall 2011 will see a review of the FIT and microFIT systems with an adjustment to tariffs issued to electricity producers. With an election looming in October, some political figure are blaming escalating hydro bills on the microFIT and FIT tariffs, threatening the future of these incentives and, as a result, the solar industry in the province. A study by ClearSky Advisors Inc shows that the cost of the FIT programs to residents of the province is expected to rise to 70c for a typical household bill by 2018. This amount is negligible when compared to the forecast of bills doubling thanks to refurbishments during the same time. The cost of installation and maintenance of solar systems is borne by the home or business owner making it one of the cheapest sources of electricity for consumers.

Why Solar is Good for OntarioSolar energy becomes cheaper as technology advances and demand grows. The Ontario Power Authority also enforces a 60% local content law which stimulates growth of the solar design and manufacture. A recent breakthrough by the University of Alberta team (based on research from the University of Toronto) has lead to the viability of spray on solar technologies. Without the market interest in these technologies, Canada will not be able to be a market leader in the field.

The study shows the tremendously positive influence that the solar industry has had on the Ontario economy. The FIT programs have contributed to the growth of the solar industry in the province. Although revisions and adjustments of FIT tariffs is the natural progression of such projects, the programs themselves are well worth the investment. If you would like to take control of where your energy comes from, contact your local MP and voice your opinion. You should also investigate installing a solar system of your own. Use energy you can be proud of.

New Steps for microFIT

February.19.2011

New Rules for microFITTremors rocked the Ontario solar industry last week as Hydro One announced that approx. 1000 customers who had applied for the microFIT program may experience grid connection delays of up to a year. This applies to mostly rural areas and Hydro One is claiming the hardware in those areas just can not bare the loads of the additional power. So, those who have applied and have been approved, and live in these affected areas, will have to wait until the grid is upgraded. If you applied for microFIT after December 9, 2010, you should get in touch with your local distribution company and make sure you can get connected.

In response to this PR disaster, the OPA has made a subtle change to the process of applying for the microFIT program. Here’s what they are suggesting:

Follow these 5 steps when applying for microFIT

  1. Apply by registering online; you’ll receive a reference number
  2. Apply to your local distribution company to connect your project (this is the new part–your LDC can inform at this point, whether or not your area will experience delays)
  3. Install the project, subject to local building codes and other required approvals
  4. Upon completion, the OPA will offer you a microFIT contract
  5. microFIT payments will begin after you accept the contract and start producing clean, green electricity

Following these 5 steps should prevent any surprises from your local distribution company once you’ve purchased and installed your solar power system.

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