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: 1498

▶ Reply to This

Replies to This Discussion

Permalink Reply by Wayne Black on July 5, 2010 at 3:32am
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)?
Permalink Reply by Graham Dyer on July 5, 2010 at 8:51am
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 !!!
Permalink Reply by Wayne Black on July 5, 2010 at 1:50pm
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
Permalink Reply by Brent Royce on July 5, 2010 at 3:23pm
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.
Permalink Reply by Dale Ketcheson on July 5, 2010 at 10:57pm
Really?

Somebody believed something the McGuinty government said?
Permalink Reply by Mary Ann Hendrikx on July 6, 2010 at 1:08am
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.
Permalink Reply by Andrew Campbell on July 6, 2010 at 1:20am
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.
Permalink Reply by Graham Dyer on July 6, 2010 at 1:33am
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% ??
Permalink Reply by Wayne Black on July 6, 2010 at 2:57am
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% ??
Permalink Reply by Go Solar Canada on July 6, 2010 at 3:14am
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
Permalink Reply by Joann on July 6, 2010 at 7:05am
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.
Permalink Reply by John Schwartzentruber on July 6, 2010 at 4:03pm
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

Alberta Crops Still Above Average, But Moisture Extremes Mean Farmers Can Expect Two Different Harvest Stories

Provincial crop ratings remain stronger than the five-year average, but Alberta farmers are dealing with a sharp regional split: declining moisture in the South and Central regions and persistent wet conditions farther north. Alberta’s 2026 crop is still looking comparatively strong heading into August, but the provincial average masks very different conditions from one end of the province to the other. As of Aug. 4, 58.1 per cent of Alberta’s major crops were rated in good-to-excellent condition. That is well above the five-year average of 42.7 per cent and close to the 10-year average of 53.9 per cent. At the same time, the provincial rating slipped from 60.3 per cent a week earlier, reflecting growing pressure in several regions. The bigger story for farmers is the province’s moisture divide. Parts of southern and central Alberta continue to dry out, with soil moisture reserves declining. In the North East, North West and Peace regions, producers are facing almost the opposite p

Survey-Based Yield Estimates Show Mixed Outlook for 2026 U.S. Corn, Soybean Crops

The USDA’s first survey-based yield estimates of the season point to a lower average U.S. corn yield in 2026 but only a modest decline for soybeans, with wide differences among major producing states. In its August crop production estimates released Wednesday, the USDA pegged the national corn yield at 180.7 bu/acre, down from 186.5 bu in 2025. The U.S. soybean yield was forecast at 52.7 bu/acre, just below last year’s 53 bu. In the biggest Corn Belt states, Iowa’s 2026 corn yield is estimated at 216 bu/acre, up 6 bu from 210 last year. Illinois is projected at 212 bu/acre, down 2 bu from 214. Closer to the Great Lakes, Michigan slipped to 174 bu/acre from 178, while Ohio posted a notable increase to 195 bu from 185. Meanwhile, the average North Dakota corn yield is forecast at 142 bu/acre, down sharply from 158 last year. Despite Iowa’s higher yield, lower harvested acreage is expected to pull state corn production down slightly to 2.765 billion bu, a decline of less than 1% fro

USDA Forecasts Smaller U.S. Durum, Spring Wheat Crops

U.S. wheat production is headed for a steep year-over-year decline in 2026, with the USDA forecasting total output at just 1.53 billion bu, down 23% from 2025 and the lowest since 1970. Most of the decline is in winter wheat – with output now forecast at roughly 990 million bu, down about 29% on the year. However, Wednesday's USDA crop production report pared the 2026 U.S. durum and other spring wheat estimates as well. The drop in the durum estimate was particularly steep. The USDA now forecasts this year's American crop at 66.4 million bu, down 6% from its July estimate and 23% below last year. Following a review of acreage data, USDA reduced estimated durum planted area to 1.78 million acres, down 3% from the previous acreage estimate and 19% from 2025. Harvested area is forecast at 1.73 million acres, also 19% below last year. At the same time, the national durum yield was reduced to 38.4 bu/acre, down 1.5 bu from the July forecast and 2.2 bu from 2025. Farmers in North Dak

Saskatchewan Harvest Progress Stalls

Harvest stalled across Saskatchewan this past week as cooler weather slowed field operations, leaving just 2% of the provincial crop in the bin as of Monday, unchanged from the previous week. Progress remains behind both the five-year average of 6% and the 10-year average of 5%, although it is slightly ahead of last year’s 1%. According to Thursday's weekly provincial crop report, harvest activity continues to be concentrated in winter cereals, early seeded pulses and a few spring cereal crops, while much of the province’s crop is still developing. The Southwest remains furthest advanced at 5% harvested, followed by the Southeast and East-Central regions at 1%. Harvest has not yet begun in the West-Central, Northeast, or Northwest regions. Among individual crops, fall rye was 27% harvested and winter wheat 18% complete. Barley was at 4% harvested as of Monday, with oats at 2%. Spring wheat harvest remains negligible, while field peas are 5% complete and lentils 2%. Canola, soyb

On the Road with 4-H Alberta: 2026 Ag Next Gen Tour

Follow 12 4-H Alberta members as they spend 10 days exploring agriculture across central and southern Alberta during the 2026 4-H Ag Next Gen Tour. Day One | July 13 Tour Highlights Began the tour at the Alberta 4-H Centre Visited Colin Rice Feedlot and learned about beef production Took part in an interactive producer journey challenge at AFSC’s Lacombe Central Office Explored lending, insurance, claims and financial processing through hands-on activities Visited Pleasant Valley Oil Mills to learn about value-added agriculture Travelled to Rochon Sands Provincial Park for the evening Ag in action at AFSC Participants visited AFSC’s Lacombe Central Office for an interactive experience that followed the journey of a producer. Working in teams, participants moved through a series of stations focused on lending, insurance, claims and financial processing. Along the way, they worked through real-world scenarios and learned how different parts of AFSC support producers through every st

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service