Due to the overwhelming success of its new microFIT Program, the Ontario Power Authority (OPA) is proposing to reduce the feed-in tariff (FIT) rate it pays for electricity produced by ground-monted solar systems.
OPA said participation in the program, which launched last October, has vastly surpassed expectations. More than 16,000 applications have been submitted, with a large majority being for ground-mounted solar projects.
OPA said reducing the rate from 80.2 cents per kilowatt-hour (¢/kWh) to 58.8 ¢/kWh will help ensure the program remains sustainable.
OPA said the new price category will better reflect the lower costs to install a ground-mounted solar PV project versus a rooftop project, and it will still enable project owners to recover costs of the projects and earn a reasonable return on their investment over the long term.
The OPA will consult with applicants over the next 30 days about the proposed price of 58.8 ¢/kWh. During this time the microFIT application intake will continue.
The microFIT Program is designed to encourage homeowners, farmers, small businesses and institutions to develop small renewable energy generation projects of 10 kilowatts or less. Project owners are paid a fixed price for the electricity they produce, with prices set to recover costs as well as earn a reasonable return over the 20-year term of the contract.
Under the proposed new price category, ground-mounted microFIT applicants who already have an executed contract or received a conditional contract offer from the OPA will receive the original price of 80.2 ¢/kWh, consistent with the microFIT rules. All other ground-mounted microFIT projects, including those for which an application has been submitted but have not yet received a contract or conditional contract offer, will receive the lower price rate.
Ground-mounted microFIT applications will be processed following the 30-day comment period.
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