On July 2, 2010, the Ontario Power Authority (OPA) introduced a proposed change to the pricing for ground-mounted solar PV projects up to 10 kilowatts in size. The OPA, at the same time, issued version 1.4 of the microFIT Rules which among other changes amends the definition of "Rooftop Facility." Subject to a 30-day public comment period that is now underway on the proposed pricing change, effective July 2, 2010, all ground-mounted solar PV projects that are less than or equal to 10 kilowatts and without an executed microFIT Contract or a signed Conditional Offer for a microFIT Contract will only be eligible for a new lower price of 58.8 cents/kWh, rather than the price of 80.2 cents/kWh that was initially set as the price for all micro-scale solar PV projects at the launch of the FIT and microFIT programs. MicroFIT applications will continue to be accepted during the comment period and solar PV projects that qualify as "Rooftop Facilities" will continue to be eligible for the 80.2 cents/kWh price.
According to the OPA, more than 16,000 microFIT applications have been received to date, most of which are expected to be ground-mounted solar PV projects, being approximately 10 kilowatts in size. The OPA has moved to the lower price level in order to "better reflect the lower costs to install a ground-mounted solar PV project versus a rooftop project" and "provide ground-mounted solar generators with the same reasonable rate of return that other generators will receive over the 20-year term of their contracts."
In addition to the new price category, the OPA's issuance of the new microFit Rules (version 1.4) effective July 2, 2010, changes the definition of the term "Rooftop Facility" to require that permanent buildings on which solar panels are to be installed, be in existence prior to the submission of the microFIT application. This is intended to ensure that permanent buildings that would not otherwise be commercially viable but for the revenue derived from the microFIT Contract are not eligible to qualify a solar project as a "Rooftop Facility" with the corresponding higher price per kilowatt-hour.
Although these changes are currently confined to the microFIT program documents, it is anticipated that a similar definition change will be introduced shortly for the larger FIT program.
These changes represent a dramatic impact for a large number of developers, equipment suppliers and landowners (predominantly farmers and rural landowners) in the ground-mounted solar PV industry, many of whom had begun investing significantly in anticipation of receiving 20-year microFIT Contracts priced at 80.2 cents/kWh. In addition, developers planning to construct rooftop solar PV projects on buildings that are intended to be constructed only after securing a microFIT Contract have been essentially halted by these changes
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
