The Province of Ontario has made a strong commitment to closing down its coal fired power plants. In doing this, Ontario has become the first Province, even country to make this commitment. To meet this goal, Ontario has modeled a renewable energy program which closely resembles that of Germany’s Feed-in Tariff (FIT).
Which Programs are Available?
Ontario’s FIT programs are geared for projects less than 10kW (microFIT), and projects between 10kW and less than 500kW (FIT).
If you’re a homeowner, farmer or a small business owner, the OPA has an opportunity for you to develop a very small “micro” renewable energy generation project which is 10 kW or less in size. You are guaranteed to be paid a fixed price for all produced energy for 20 years.
Following Germany’s Lead
Roughly 20 years ago, Germany launched its Feed-in Tariff program, allowing its citizens to earn for feeding renewable energy into the grid. The rate is fixed depending on technology and application, guaranteed for 20 years.
More Sun than Germany?
This fact can sometimes surprise most; Ontario has more than 10-15% more sun compared to that of Southern Germany. Ontario is a great environment for solar energy production because of great sun radiation, and cooler temperatures. Solar panels will function more efficiently in cooler weather, which brings an increase in overall energy production.
What is the Financial Incentive?
Roof mounted microFIT PV systems have the highest rate, at 80.2 cents per kilowatt hour (kWh). Ground mounted microFIT systems, tracker or fixed, have a payout of 64.2 cents per kWh.
FIT systems offer rates of 71.3 cents per kWh for rooftop projects between 10kW and 250kW, 63.5 cents per kWh for projects between 250kW and 500kW, and 53.9 cents per kWh over 500kW. Ground mounted systems between 10kW and 10MW offer rates of 44.3 cents per kWh.
Benefits of Ontario’s FIT Program
The program is designed to cover the costs of the system (purchase, installation, connection and operating costs), while allowing you a reasonable return on your investment.
Not only will you be earning money, you’ll also be contributing to a healthier environment for all of us. You’ll also be helping the province of Ontario replace its coal-fired power plants by 2014, reducing greenhouse gases, and other pollutants. You’ll be part of North America’s largest climate change initiative.
Green Job Creation
The FIT program is also creating new “green” jobs and opportunities for Ontario’s residents, as thousands of jobs and college courses have been created over the last few years.