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: 1197

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

Alberta Canola Transitions Service Charge Administration to Levy Central

Alberta Canola Transitions Service Charge Administration to Levy Central. Effective June 1, 2024, the service charge collected from farmers on canola delivered in Alberta, is being administered by Levy Central.  The transition to Levy Central offers improved efficiencies in managing levy data and human resources. The internal administrative change will not impact canola farmers. Grain dealers licensed to buy canola will continue to collect and remit the regulated canola service charge of $1/tonne and seller information, which is now administered by Levy Central. Alberta Canola remains the contact for Alberta’s growers for all questions about the canola service charge. The move to Levy Central coincides with the retirement of Cheryl Rossi, who administered the service charge for the Alberta Canola Producers Commission for over 33 years. About Levy Central Based in Saskatoon, Levy Central administered the collection of agricultural check-off levies for 10 crop commodity organization

Highly Pathogenic Avian Influenza Detected in a Sioux County Dairy

The Iowa Department of Agriculture and Land Stewardship and the United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) have detected a case of Highly Pathogenic Avian Influenza (HPAI) in a herd of dairy cattle in Sioux County, Iowa.  About HPAI  HPAI is a viral disease that affects both wild and domestic bird populations as well as lactating dairy cattle. HPAI can travel in wild birds without those birds appearing sick, but is often fatal to domestic bird populations, including chickens and turkeys. With supportive care, dairy cattle recover with little to no mortality associated with the disease.  Heightened Biosecurity   The Iowa Department of Agriculture and Land Stewardship is strongly encouraging Iowa poultry producers and dairy farmers to bolster their biosecurity practices and protocols to protect their flocks and herds. The Iowa Department of Agriculture and Land Stewardship has biosecurity recommendations for dairy herds to utilize.

The First Ergot-Resistant Durum has Been Developed

In a Canadian first, ergot resistance has been incorporated into a durum line, called DT2033. It has a stack of high-value traits including intermediate resistance to fusarium head blight (FHB), another toxic disease. Developing DT2033 involved the integration of state-of-the-art molecular techniques, including genomic sequencing, gene expression analysis, and high-resolution genetic mapping. The research is being done jointly by AAFC Lethbridge, AAFC Swift Current and AAFC Morden in Manitoba. These approaches helped create high-throughput molecular tools, enabling the precise selection of ergot-resistant genes during the breeding process. “We believe DT2033 will become the next durum wheat variety grown on Canadian farms,” researcher Yuefeng Ruan of AAFC Swift Current says. Ergot-resistant durum wheat would be particularly important for Canada due to several reasons: Grain Quality and Safety: Ergot is a fungal disease that affects cereal crops, including durum wheat, and produces

New insurance program to help grow New Brunswick beef sector

A new risk management tool for beef producers aims to protect them financially and help their sector grow.

New insurance program to help grow maritime beef sector

Through a collaborative investment between the federal and provincial governments, a new risk management tool for beef producers will facilitate growth of the sector across the Maritime region.

© 2024   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service