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September 25, 2009
Toronto,
ON, Canada: Ontario Sets Out Feed In Tariff Rates; Minimum Domestic
Content Criteria
The
Government of Ontario has officially launched Canada’s first feed-in
tariff, a new renewable energy program established under the landmark
Green Energy Act.
The
major components of Ontario's Green Energy Act include:
- A
Feed-In-Tariff program, which allows individuals and companies
to sell renewable energy -- like solar, wind, water, biomass,
biogas and landfill gas -- into the grid at set rates.
- Domestic
content requirements, which would ensure at least 25 per cent
of wind projects and 50 per cent of solar projects be produced
in Ontario -- requirements for solar will increase by January
1, 2011 and wind will increase by January 1, 2012.
- A
streamlined approvals process and a service guarantee to bring
developers greater certainty.
- Regulations
for setting wind turbines certain distances from houses, roadways
and property lines.
- A
new Ontario Renewable Energy Facilitation Office -- a one-stop
shop to help renewable energy projects get off the ground faster.
More
than 50,000 direct and indirect jobs are planned to be created
under the Act.
Solar
FIT payments will range from 80.2 c/kWh (Canadian) for residential
solar rooftop projects 10 kW or smaller to a lowest amount of
44.3 c/kWh (Canadian) for ground mounted systems over 10 kilowatts.
However, Ontario will direct the Ontario Power Authority that
there is to be no ground-mounted solar procurement above 100 kilowatts
on class 1 and 2 or Specialty Crop Areas to provide continued
protection of such lands. Some ground-mounted solar procurement,
up to 500 megawatts, will be allowed on Class 3 lands, allocated
on a regional basis.
The
FIT also includes a "price adder" for Aboriginal and community
projects to encourage participation.
Developers
will be required to have a certain percentage of their project
costs come from Ontario goods and labour at the time they reach
commercial operation. For micro solar PV (10 kW or smaller), the
requirement will start at 40% and increase to 60% on Jan. 1, 2011.
For larger solar PV, the requirement will start at 50% and increase
to 60% on Jan. 1, 2011.
The
Ontario Power Authority will begin accepting FIT applications
on October 1, 2009 and expects to sign the first contracts in
early December.
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