Toronto, July 15, 2010 - A change in prices for
renewable energy under Ontario's highly successful microFIT Program
has prompted swift reaction from the solar energy industry.
Ontario Power Authority (OPA) quietly announced that the rate
being paid to some producers would be slashed from 80.2 cents to
58.8 cents per kilowatt hour.
Last October the Ontario Power Authority (OPA) launched the
successful microFIT Program. Participation in the program has been
very popular and it has vastly surpassed expectations. In fact,
more than 16,000 applications have been submitted, with a large
majority being for ground-mounted solar projects.
Due to this overwhelming popularity for the ground-mounted solar
projects, the OPA is proposing a new pricing category of 58.8 cents
kilowatt-hour (¢/kWh) for these projects. This will help ensure the
program remains sustainable and electricity ratepayers - Ontario
families - receive good value for new, clean, reliable renewable
energy.
The new price category will better reflect the lower costs to
install a ground-mounted solar PV project versus a rooftop project.
It will provide a price that enables future project owners to
recover costs of the projects as well as earn a reasonable return
on their investment over the long term. The OPA will consult with
applicants over the next 30 days about the proposed price of 58.8
¢/kWh. During this time the microFIT application intake will
continue.
The microFIT Program is designed to encourage homeowners, farmers,
small businesses and institutions to develop small renewable energy
generation projects of 10 kilowatts or less. Project owners are
paid a fixed price for the electricity they produce, with prices
set to recover costs as well as earn a reasonable return over the
20-year term of the contract.
"The OPA believes the new price category is fair, reasonable,
more accurately reflects the costs associated with ground-mounted
projects and maintains the long-term stability of the program,"
says Colin Andersen, Chief Executive Officer of the Ontario Power
Authority. "It enables the program to continue to meet its original
goals and provides proper value to both generators and
ratepayers."
Under the proposed new price category, ground-mounted microFIT
applicants who already have an executed contract or received a
conditional contract offer from the OPA will receive the original
price of 80.2 ¢/kWh, consistent with the microFIT rules.
All other ground-mounted microFIT projects, including those for
which an application has been submitted but have not yet received a
contract or conditional contract offer, will receive the price
following consultations on the proposed 58.8 ¢/kWh. Ground-mounted
microFIT applications will be processed following the 30-day
comment period.
Ontario Energy Minister Brad Duguid points out that those who
already have contracts will continue to get the higher rate. Mr.
Duguid said the new rate applies only to new ground-mounted systems
and those planning roof-mounted installations will still get 80
cents per kilowatt hour under the microFIT program
The OPA will hold a number of webinars to discuss the introduction
of this proposed new price category and answer questions. The OPA
will also accept comments by e-mail and regular mail. Details on
how to participate in the webinars or submit comments can be found
on the microFIT website: http://microfit.powerauthority.on.ca/.