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Feed‐In‐Tariff (FIT)
10 kW Grid ;ed PV system with baCery backup. Prince Edward Country, ON.
Courtesy Quantum Renewable Energy
• Overview: Green Energy Act • Overview: how to make money by genera;ng renewable energy through the FIT and microFIT program
• Business opportunity: join the supply chain (Ontario content rules)
• Iden;fy other opportuni;es
Goals for today
Incorporated, non‐profit, membership associa;on
Mission: Posi)on Southeastern Ontario as a centre of sustainable energy
Funded by membership fees and some grant funding (e.g. to end of 2009, by the Trillium Founda;on)
Members include: Businesses, Farmers, Researchers, Educators, Students, Public organiza;ons, Professionals, Consumers
We provide contacts, networking opportuni;es, informa;on, exper;se
What is SWITCH?
Big Opportunity: The Green Energy Act
• May 2009: new Provincial legisla;on
Purpose: The purpose of this Act is to facilitate the development of a sustainable energy economy that protects the environment while streamlining the approvals process, mi;gates climate change, engages communi;es and builds a world‐class green industrial sector.
‐‐ A Green Energy Act for Ontario: Execu;ve Summary
The Green Energy Act: Highlights
• Tariff programs (FIT and microFIT) • launched October 1, 2009
• Ontario content regula;ons
• Obliga;on for u;li;es to connect
• Faster approval process for small systems
• Clear rules for larger systems
The Green Energy Act: Feed‐In‐Tariff (FIT)
• Feed‐In‐Tariff (FIT): • Generate revenue from sustainable energy
• Supply the electricity you create to the local u;lity
• Receive payment from the Ontario Power Authority
• Guaranteed income for 20 years through contract
• Applies to solar, wind, hydro, bio‐gas, bio‐mass
The Green Energy Act: microFIT
• microFIT (subset of FIT)
• Small installa;ons: 10 kW and under
• Solar the favoured op;on
• Earn $0.802 per kWh (we pay $0.08‐$0.10 per kWh)
• Quick approval and connec;on process • Asset paid off in 8‐12 years (lasts 30‐40 years)
The Green Energy Act: Why pay so much?
• Consistent supply (as long as the sun shines) • Great for seasonal, tourism, farms
• Ontario has sun (1200h/yr Kingston vs 900h/yr Germany)
• Reduced transmission losses (distributed genera;on)
• Produced at peak ;mes of the day • Switch away from high‐carbon electricity (coal)
• Grow an economy based on renewable energy technology—Move jobs HERE!
• Ini;al investment cost • About $65,000 – $100,000 for a full 10 kW installa;on • Many variables – get 2‐3 quotes
• Return on investment • Average return of 3‐10% (many variables) • Calculator available on our website (microfit:pv_cost) • Significantly higher than a long‐term Canadian government bond!
Feed‐In‐Tariff (FIT): Key considera;ons
Feed‐In‐Tariff (FIT): Key considera;ons
• Financing (microfit:financing) • Can finance your installa;on (mortgage/loan) • See our Energy Digest for the latest info
• Deprecia;on (microfit:depreciation) • Accelerated deprecia;on is permiCed (3 years)
• Insurance (microfit:insurance) • Costs about 0.1‐0.3% of system value per year • (Give us feedback about the quote you get)
• Property Tax (microfit:property_tax) • No increase in assessed values is expected
• Income Tax • Only pay tax on net income (ajer expenses)
• Owning or leasing / ren;ng a roof (microfit:renters_list) • You can rent your roojop • List of roof renters available
Feed‐In‐Tariff (FIT): Key considera;ons
• What if you move? • Transfer contract to new owner or rent the roojop from the new owner
• Maintenance • Limited maintenance costs • Your solar provider should build that into the proposal • System should s;ll be performing at 80+% capacity ajer 20 years
Feed‐In‐Tariff (FIT): Key considera;ons
What makes a good roof?
• What makes an ideal roojop for solar • *Structurally sound – to hold extra load • Flat roofs use racking; Sloped roof 25‐45 degrees • South facing • Fully east or west only 15‐20% less efficient • No trees or shade (now or in future)
• Resources to help • Get a quote from a qualified solar contractor • www.switchkingston.ca/microfitvendors.php
How to choose a solar contractor • Some ques;ons you should ask
• Are they a member of CanSIA? • What are their qualifica;ons? • Warran;es, guarantees? • References, tes;monials? • How many years of experience? • Which licensed electrician do they use? • Have they goCen building permits before? • Who are their solar modules, inverters, etc., cer;fied by? (CSA, UL, ANSI, etc.)
LDC Reac;ons
• Local Distribu;on Companies • Hydro One, Canadian Niagara, other… • This makes them nervous:
• They are used to designing and controlling • They have no control over generators • Their technicians could be electrocuted • They have no incen;ve to serve generators • They law forces them to do so
• Rates for connec;on vary from $500‐$1100 • Monthly billing fee yet to be set by the OEB • They appear to be ac;ng in good faith (and in some cases, with enthusiasm)
OPA Reac;on
• Their roles: [Develop program], provide info (web), register you (web), manage your contract, pay you, coordinate with LDC
• Have been swamped and had to scramble • Have largely met their objec;ves as of Dec 16
• microFIT: 700 approved from 1200 applica;ons, for 8MW of grid space, 97% PV)
• Manage FIT applica;ons (limited space) and rules for connec;ng
• FIT: 1,200 applica;ons (8,000MW) for 2,500MW of grid space (“shovel‐ready” and “no grid upgrades needed” = you go first)
The Green Energy Act: Other opportuni;es
• Ontario content rules for each project • 25% wind, 40% small solar, 50% large solar must be sourced in Ontario • These rates will rise each year • Could your business par;cipate?
“It could produce an ‘ecosystem of skills and capabilities’ making the province a key locus of green energy manufacturing”
More business opportuni;es!
• EcoEnergy government rebate program • get cash for energy improvements (residen;al) • in par;cular, solar hot water
• Residen;al grant: $2,500 • Commercial grant: up to 50%
• www.ecoac;on.gc.ca (Renewable Heat)
• 1000 Solar Roojops Challenge (in Kingston) • community challenge to “go solar” • gain public profile by taking the challenge
Why is this good for business?
Green Impact • Reduce emissions through renewable energy
Green marke;ng • Marke;ng yourself as truly a green business • Hard to hide solar on your roojop • Ini;ate a Solar Roojop Challenge • Inspire others ‐ You are driving the crea;on of this 21st Century industry!
Why is this good for business?
Energy genera)on = Revenue genera)on
• Unlock an underu;lized asset: your roof • Guaranteed revenue for 20 years
• Can plan on this • Balances out seasonal ups and downs
• e.g. seasonal, tourism, farming (land/ roofs)
Why is this good for business?
Ontario content => Supply chain poten)al
• There already is huge uptake for Ontario content • You can innovate/ diversify/ re‐tool • Need manufacturers, fabricators, freight, financial, …and more
SWITCH can help Green Energy Act and beyond
Wind Energy
Solar Energy
Geo‐thermal Energy
Hydro
Bio‐energy
Fuel Cells
Energy Conserva;on
Educa;on and Training in technology, prac;ces
Distributed Genera;on
Public Policy
Green Building