By Don Huff

Through the Green Energy Act, Ontario has introduced new electricity pricing to encourage renewable energy generation by a diverse range of producers including homeowners, community-based groups and larger scale commercial generators.

As North America’s first guaranteed pricing structure – called a feed-in tariff (FIT) –  FIT establishes prices for energy generated from renewable sources, including onshore and offshore wind, hydroelectric, solar, biogas, biomass and landfill gas.

The Green Energy Act (GEA), passed last spring is establishing Ontario as North America’s leader in renewable energy and appears to be driving green investment into the province.

FIT pricing differs based on project size (output) and type of renewable energy technology being deployed. Pricing allows for the recovery of capital, operating and maintenance costs and a reasonable rate of return on investment over an approximate 20 year period. There are also special “adder” categories for aboriginal and community-based projects.

The MicroFit program was developed for homeowners, farmers and small business owner, who have the opportunity to develop a very small or “micro” renewable electricity generation project (10 kilowatts or less in size) on their property. Under the MicroFIT Program, you will be paid a guaranteed price for the electricity your project produces for at least 20 years.

The best source of information about the FIT is  available at http://microfit.powerauthority.on.ca/

Solar micro generation, 10 kilowatts and under, will enjoy the highest tariff in order to incent Ontarians to participate. If the FIT program leads to 100,000 residential solar rooftop installations, it will amount to one percent of Ontario’s supply mix.

The old rates were 42 ¢/kWh. Here are the new Solar FIT rates for Ontario:

Rooftop

  • Less than 10 kW – 80.2 ¢/kWh  (MicroFit)
  • 10 – 100 kW – 71.3 ¢/kWh
  • 100-500 kW – 63.5 ¢/kWh
  • Greater than 500 kW – 53.9 ¢/kWh

Ground Systems

  • Less than 10 MW – 44.3 ¢/kWh  (MicroFit)

The proposed FIT prices for solar photovoltaic (PV) projects are designed to kick start the solar PV industry in Ontario. Solar PV is a rapidly developing industry with the potential for steep reductions in cost in the coming years.

FIT prices were derived from a range of sources using best available and most recent information. Prices were developed based on experience here in Ontario and in other jurisdictions. They cover construction and maintenance costs, while allowing for a reasonable rate of return on investment (over an approximate 20 year period) and the basic connection costs for typical projects.

Don Huff is President of Environmental Communication Options

Biogas, Biomass, Don Huff, ECO, Environmental Communications Options, Feed-In Tariff, FIT, Green Energy Act, Hydroelectric, Landfill Gas, microFIT, Ontario, Renewables, Solar, Solar PV