Ontario Agriculture

The network for agriculture in Ontario, Canada

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: 1193

Reply to This

Replies to This Discussion

Price has not been set in stone yet. Comment period is open for 30 days (or less by now). I have not yet found where to make comments but rest assured - we are working on it.
Point is though - the price will be dropping as it has in other jurisdictions. By how much?
Does 58 cents still pay well enough for the investor (such as farmer Andrew)?
I also can't find the place to send any comments.....it makes me wonder if they really want them.

Although, you will notice that they have had the time to already published these new 58c price points and the new 58c category.

They have also included a phrase that for RoofTop projects, that the building has to be 'pre-existing' to the solar application - ie you can't build a building after being awarded the solar project.... there goes a whole bunch of projects aswell !!

Watch the fine print !!!
Comments!! - Check out http://microfit.powerauthority.on.ca for July 6 & 8 Sessions and for comment instructions.

There will be a 30-day comment period on the proposed new price category. Please send all comments and submissions to microFIT@powerauthority.on.ca. While all emails will be read, not all emails will receive individual responses.

Comments also can be mailed to the following address and must be postmarked no later than Tuesday, August 3, 2010.

Ontario Power Authority
120 Adelaide Street West, Suite 1600
Toronto, Ontario M5H 1T1

Attention: Ground-Mounted Solar PV
we all knew it was to high to be true. The ones getting screwed are the people that have already bought the equipment and signed contracts. I know a farm that is putting in a biogas digester and OPA changes the rules almost by the day. OPA is a government body that doesn't like to do what the politicians have made manditory. Why buy power from everyone when you are used to buying from a couple of people.
Really?

Somebody believed something the McGuinty government said?
There's lots to be angry about in this whole thing, starting with the slowness of reply to applications. There's the issue of financing, which is difficult at best for a lot of people in animal agriculture. They could really use a little pocket change. People have gone through legal costs to arrange financing, spent time on investigating and researching. Those I know who don't have the money sitting around and arranged financing, are seriously considering cutting out.
The 80 cents is not a really big issue, when the sun is hot, and the air conditioners get humming, it costs more than that to bring in outside power at peak times, exactly when the solar is working best. I dislike conspiracy theories, but it seems like someone figured out that farmers in the province might be getting some cash, and put a damper on the whole thing.
I don't think you are not too far off Mary Ann.

The idea that the cost of rooftop panels are that much more expensive that ground mounted is outrageous. They should have known the costs before putting this in place, and made decisions based on that. If application numbers weren't so high - would they be doing the same thing?

All of the sudden - farmers are taking advantage of this is big numbers - and then get their legs cut from underneath them.
What kind of contracts did Farmers have with the developers...with this price drop - do people need to continue to install and pay for a solar project even though revenue has dropped by 30% ??
This is mainly for individuals who bought and installed on their own. Farmers who have a signed contract will still get the 80.2 cents from my understanding. It is the ones who, like has been stated, waiting to check things over with a fine tooth comb, that will be disadvantaged. The technology has not improved that much in the last 30 days to account for the big drop in price.
As with any government program - it will change... and not likely for the best.
The bigger projects (over 10 kW) will be on a different price structure (and much lower than 80 cents).

Graham Dyer said:
What kind of contracts did Farmers have with the developers...with this price drop - do people need to continue to install and pay for a solar project even though revenue has dropped by 30% ??
The truth is even though they are paying 80.2 cents it doesn't mean that is what it is costing them.
1. Distributed Generation, generates the power where it is needed without large power losses in the resistance of the wire ove long distances, I have heard that this can be up to a 30% loss from nuclear, coal or Hydro plant to your home
2. Job creation, part of the money put into the coffers to fund this program was for job creation in the much needed manufacturing sector
3. Dept repayment, Would you rather pay a larger Dept repayment charge one the new nuclear reactors that are built and once again 40% over priced ( that's a lot of money on a 20 billion dollar expenditure.)
4. Your Hydro is already subsidized, Would you rather have the subsidy or would you rather give it to the big businesses so they can pad their executives pockets.

Do you still think 80cents is to high
I agree with you Andrew. A 60 page agreement, I can imagine, has plenty of wiggle room in it. I can well imagine there will be more surprises in the future.

Many people questioned how the government can afford paying 80 cents to produce hydro only to turn around and sell for 9 cents.

When one looks up the definition of "ponzi scheme" and "pyramid scheme"....... one wonders if the whole solar bandwagon is a hybrid of the two.

Our provincial government shows little to no respect towards agriculture and the latest stunt amplifies the contempt they have towards farmers.
Why does the "Pigeon King" come to mind?

Reply to Discussion

RSS

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

Premier Weighs In On Potential Strikes At Both CN And CPKC

Close to 10 thousand workers with CN and CPKC were planning to hit the bricks next Wednesday if the companies didn't deal with their concerns. The number one issue, according to the Teamsters is an adequate amount of rest time between shifts. It's possible, a strike won't happen next Wednesday. That's because the federal labour minster asked the Canada Industrial relations board to study the impact of a strike and whether it could lead to safety concerns. Until the board makes a ruling, a strike can't happen. There's no timeline for the board to issue a decision, it could tomorrow,.it could happen next month. The Teamsters says it will abide by that. This week, Premier Danielle Smith said while she appreciated the federal government intervened by asking for this report, she says the government must ensure there is a lasting solution to this dispute. Andre Harpe with the Grain Growers made it clear, the impact of a strike by both railways at the same time right in the middle of seedin

Ottawa Announces $9.6 Million for ASF Prevention, Preparedness

The federal government on Friday announced a multi-million dollar investment in African Swine Fever prevention and preparedness. The more than $9.6 million in funding will support 29 African Swine Fever Industry Preparedness Program (ASFIPP) projects in Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia and Prince Edward Island, Ottawa said in a release. The money will be earmarked for ASF research, improved biosecurity measures, wild pig management activities, retrofits of existing abattoirs, and regional preparation for the welfare depopulation and disposal of healthy hogs. Funding will also go toward sector analysis, engagement and education tools, and ensuring the domestic hog sector is prepared should a case of ASF be detected. “This initiative, and its proactive approach, underscores our commitment to invest in advanced technologies, rigorous training, and collaborative partnerships to fortify our defenses against African Swine Fever and other potential threats,”

‘Important Share’ of Soy Production from Flood-Impacted Brazilian State to be Lost: USDA FAS

Unprecedented flooding in the southern Brazilian state of Rio Grande do Sul could take a hefty toll on country’s total expected 2023-24 soybean production, says a new report from the USDA’s Foreign Agricultural Service (FAS). Released Thursday, the report – which is based on estimates from the Association of Technical and Rural Extension Enterprises of Rio Grande do Sul (EMATER/RS) - said the afflicted state was poised to harvest a total soybean crop of 22.3 million tonnes, a new record high. But with the harvest only about three-quarters complete by the time the floods hit in late April, that left approximately 5.3 million tonnes of crop still out in the field, representing over 20% of EMATER/RS’s output estimate for Rio Grande do Sul and up to 4% of Brazil’s forecasted national soybean production. Perhaps not all that production potential will be written off, but the report said market analysts agree that an ‘important share’ of the Rio Grande do Sul’s expected soybean output w

Alberta Seeding of Major Crops About One-Third Complete

Despite significant precipitation in parts of the province last week, Alberta producers still had about one-third of major crops in the ground as of Tuesday. The latest weekly crop report on Friday pegged the planting of major crops (spring wheat, oats, barley, canola, and dry peas) at 32.5% complete, up from around 16% the previous week, and ahead of the five- and 10-year averages of 28% and 27%, respectively. Seeding is the most advanced in the South Region at about 50% complete as of Tuesday, although that slightly lags the region’s five-year average of just over 51%. On the other hand, seeding in the Peace Region was nearly 41% done – far ahead of the five-year region average of 17%. The Central region was at 29.5% complete, up from the average of 28%, while the North East and North West were at 22% and 19%, compared to 18% and 17% on average. Across the province, an estimated 45% of the spring wheat crop was seeded, with barley at 33% and oats at 15%. The canola crop was 15%

East Gen Launches Registration For 2024 Atlantic Showcase

With over 30 years of success in Atlantic Canada, the East Gen Showcase is scheduled for the Exhibition Grounds in Bible Hill, for July 2-4, 2024.  Registration is now open, and we are excited to welcome dairy and beef participants for three days of learning, friendships, and showing cattle.

© 2024   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service