Ontario Agriculture

The network for agriculture in Ontario, Canada

Solar Prices Drop -- Blood Pressure Rises

The Ontario government is changing the price they will pay for solar power -- here's what they have to say....

"To help ensure the program remains sustainable the OPA has proposed a new price category for microFIT ground-mounted solar PV projects. Ground-mounted solar PV
projects of 10 kilowatts or less will be eligible to receive a proposed price of
58.8 cents per kilowatt-hour (¢/kWh). Rooftop solar PV projects, as defined in
the microFIT Rules, version 1.4, will continue to be eligible for 80.2 ¢/kWh.


The proposed 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 business side of me is actually pretty angry with the move. We are getting ready to file an application - taking the cautious approach. Making sure to comb over a number of deals to make sure when we lock into 20 years -- we don't get the short end of the stick. Now - because we have taken the time to do that (which they encouraged) we are out over 20 cents. After all they said the price wouldn't change until October 2011.

That said - I couldn't figure out how they were going to pay 80 cents to begin with. Although - 58 cents is still too high.

This all makes believing what government says pretty tough to do -- doesn't it....

Views: 1263

▶ Reply to This

Replies to This Discussion

Permalink Reply by Roadrunner on July 9, 2010 at 3:40pm
A little different than the Pigeon King....the government is the customer and they distribute the electricity to consumers....we will need energy and clean energy - solar makes sense in theory. Because it is so new I think big mistakes can be made...I would rather see the government take a hit for stimulating a new industry with some extra revenue to farmers than have a lot of nice farmers get whacked financially because the Ont Govt thought they were overpaying for clean energy...
Permalink Reply by Roadrunner on July 14, 2010 at 2:34pm
Looks like OFA is going to fight this change in price....


OFA: Government Can't Rewrite the Deal.

By Paul Wettlaufer, Director, Ontario Federation of Agriculture

Faced with a 27 per cent cut in price on a contract with the Ontario Government for the production of green energy, Ontario farmers question the management of the program and the intent of the government on green energy.

When the government announced its plans to promote and use green energy, farmers lined up to produce solar energy. Then, without warning, the government announced changes to the deal already signed.

Government developed a green energy incentive for ground mount solar and quoted a reasonable price, farmers penciled it out and signed up, leading the way in Ontario's green energy revolution.

For reasons that make no sense whatsoever, the government on July 2 announced it was withdrawing its offer and substituting a lower price. Thousands of hours of research, work with banks, work with contractors, is all for naught for approx 11,000 applicants.

The price was right and now its not.

Not only is this a serious blow to farmers who were willing to make this investment but it could be the death knell for the green economy.

The Ontario Federation of Agriculture will be lobbying the province to ‘grandfather’ all applications submitted up to July 2 for the original quoted price.

Our members have made significant investments in solar infrastructure based on the deal they thought they had with the province. A 27 per cent cut in the price paid for that energy will mean an unacceptable loss.

Honoring the price offered to the applicants who have already made significant investments can be the only accepted outcome.

This is not only devastating to farmers, it jeopardizes the futures of green energy manufacturers.

Cancelled projects will mean lost investment from farmers and loss of future sales of solar equipment.

With this change Ontario will lose millions of dollars in new manufacturing opportunities; lose hundreds of manufacturing jobs; municipalities will forego

millions of dollars in tax revenue; and once again Ontario’s rural economy suffers a "gut shot".

This has shaken the confidence of rural Ontario and investors everywhere.

What's the next rug that will be pulled out from under us on the green energy file?

The designers of the deal understood the economic benefits and spinoffs in jump starting the green economy. The ones trying to tear it down need to recognize the economic damage.

We will be calling on all OFA members to contact their MPPs. We will seek their support of our plan to grandfather the originally-stated rate into all applications submitted up to July 2, 2010.

Farmers have shown good faith and leadership with their involvement in the green energy industry. Now is not a good time for the government to start rewriting the deals.
Permalink Reply by Joe Dales on July 21, 2010 at 2:05am
Ontario Solar Network is planning a townhall meeting to discuss what can be done about the price changes etc..

Here is the link from the OntAg Events Calendar.

Joe

http://ontag.farms.com/events/ontario-solar-network-to

▶ Reply to Discussion

RSS

Agriculture Headlines from Farms.com Canada East News - click on title for full story

TELUS investing $15 billion in British Columbia through 2029 to enhance connectivity, support Canadian AI leadership and fuel economic growth

TELUS is investing more than $15 billion over the next five years to expand and enhance its network infrastructure and operations across British Columbia. As Canada navigates a challenging economic environment and seeks to attract more investment in the country to stimulate growth, this commitment to the province's future will help fuel homegrown innovation and support the prosperity of urban and rural communities. This investment builds on an impressive track record, with TELUS having invested more than $66 billion in B.C. since 2000, and is part of a larger commitment to deploy a total of $70 billion by 2029 across Canada to boost productivity and support a robust national economy. "For more than 125 years, TELUS has been headquartered in Western Canada, building a legacy of advancing British Columbia's economic and social prosperity. Indeed, against a backdrop of macroeconomic uncertainty, TELUS stands as one of the few companies committing to bold, future-focused technology invest

Fall in Crop Receipts Helps Drag 2024 Farm Income Lower

The steepest fall in crop returns in more than two decades badly dented Canadian farm income last year, according to preliminary numbers released by Statistics Canada Wednesday. The federal agency pegged 2024 realized net income for Canadian farmers at $9.4 billion, down $3.3 billion or almost 26% from the previous year. That marked the largest year-over-year percentage decline in realized net income since 2018, when it tumbled 41% to $4.2 billion, mainly due to sharply higher farm expenses. Stripping cannabis out of the equation made the fall in realized net farm income a bit less steep – down 23% to $9.7 billion – although still significant. Realized net income is the difference between a farmer's cash receipts and operating expenses, minus depreciation, plus income in kind. Mainly the result of lower prices for most major grains and oilseeds, total Canadian crop receipts fell 6.2% to $52.1 billion in 2024, the largest percentage drop in crop receipts since 2003. Wheat (ex

Saskatchewan Seeding Reaches 88% Complete

Saskatchewan producers made good seeding progress again this past week, with most crops developing normally. Thursday’s crop report estimated provincewide seeding at 88% complete as of Monday, up from 72% a week earlier and ahead of the five- and 10-year averages of 82% and 85%. Rainfall was variable across the province with some producers in the southeast regions experiencing increased amounts. The highest reported rainfall was in the Weyburn area at 66 millimetres (mm). However, other areas reported dry, windy conditions, and topsoil moisture levels did show some erosion compared to a week earlier. Cropland topsoil moisture across the province was rated 4% surplus, 65% adequate and 27% short as of Monday, versus 6% surplus, 69% adequate, 22% short, and 3% very short the previous week. Fall cereals are currently rated at 89% normal crop development for this time of year, with 7% ahead and 4% behind normal. Spring cereals are estimated to be 73% normal with 13% ahead and 14% be

Trump tariffs mean fewer machinery purchases, higher costs for farmers

Ag equipment manufacturers had hoped to see sales volumes start to recover this year from the current slump, but those high expectations have been lowered by the negative yo-yo impact of U.S. tariff rates — and those tariffs will end up costing farmers in North America more for new machinery and parts, even here in Canada.

Canadian Farm Income Sees Sharp Decline

In 2024, Canadian farmers saw the biggest drop in realized net income since 2018 due to falling crop prices, reduced receipts, and rising interest and input costs.

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service