Gloom Lifts for Microfit Program

Jeff Green | Aug 19, 2010

Last month a number of people who were either considering investing, and some who had already invested, in solar power installations under the provincial MicroFIT program, found themselves on the wrong end of a change in policy by the Ontario Power Association (OPA)

On July 2, a Friday afternoon, the OPA proposed that the price paid for small-scale (less than 10 kilowatts in capacity) power generation using ground-mounted systems would be 58.8 cents per kilowatt hour, down from the 80.2 cents that had been the price when the program was established in September of 2009.

They also proposed that for those who had applied for the program but had not yet had their applications processed, the 58.5 cent price would apply, not the promised 80.2 cent price. These proposals were widely attacked by people involved in the burgeoning home solar panel industry, as well as by opponents of the government.

On August 13, another Friday afternoon, the OPA released its final decision on the proposed price cut for ground-mounted solar installations. The new rate will be 64.2 cents per kilowatt-hour and will be applied to those who submitted applications as of July 2, 2010. It will not affect the price received by those who submitted MicroFIT applications before July 2. They will receive the 80.2 cent price.

Gordon Miller, the Environmental Commissioner of Ontario, said "This change shows due consideration for the applicants who designed projects and arranged financing based on a price and rules that were agreed to following consultation in 2009."

A number of small companies in Eastern Ontario were facing an uncertain future after the July 2 announcement because they had pinned their businesses to the MicroFIT. Anne Kortekaas runs Eco-Alernative Energy in Sharbot Lake with her husband Ron. “This is great news,” she said of this latest announcement, “particularly for the 14,000 applicants who submitted applications before July 2 and have been waiting for their conditional offer. The OPA has also announced that it intends to improve communications and increase transparency by establishing a microFIT advisory panel.

“Commercial aggregators (e.g. businesses that lease land or rooftops from individuals for multiple renewable energy projects) will no longer be allowed to participate in the microFIT program. This will ensure that the microFIT program is focused on its original purpose- encouraging homeowners, farmers, farm co-operatives, Aboriginal communities, small businesses and institutions such as schools, to own and develop small renewable projects. The program will continue to be a sustainable program that encourages residents to participate in the growing clean energy economy.”