Solar Installations in Ontario: what is within MicroFIT

On September 24th, 2009 Ontario government introduced Ontario's Green Energy Act, which is expected to create 50,000 new jobs and reshape the energy landscape in the province. One of the major components of Ontario's Green Energy Act is a Feed-In Tariff (FIT) program, which allows individuals and companies to sell renewable energy (solar, wind, water, biomass, biogas and landfill gas) into the grid at set rates. The MicroFIT program is a subset of the Feed-In Tariff program which targets residential and small commercial projects which are less than 10kW in nameplate capacity. In this article we discuss implications of most essential provisions in the MicroFIT program (namely, local content rule, price, the Electrical Safety Authority (ESA) inspection and connection to a local utility) on residential and small commercial solar installation projects.

Price
This is the most attractive part of the program. Currently for solar MicroFIT projects (less than 10kW in nameplate capacity) the price is set to 80.2c/kWh. This price will be fixed in the contract for 20 years. However, the program rules indicate there is a provision that this price may be reviewed (obviously downgraded) for those signing contracts after the few initial years. Thus, timing matters for MicroFIT projects.

Local content
A certain part of the PV project should be manufactured or produced in Ontario. For solar PV projects that reached commercial operation on or before December 31, 2010 it is 40%, after December 31, 2010 – 60%. According to program rules, it is easy to achieve 40% threshold using a local installer (27%) and a supplier of electric hardware (10%) in combination with either assembled solar panels (13%), an inverter (9%) or a mounting system (9%). However, 60% threshold can be reached using all components mentioned above (it is very unlikely that within the next couple years anybody will build any facilities for silicon processing or cell manufacturing in Ontario, thus it does not make sense to discuss any other possibilities to meet this threshold). Essentially, limited supply (currently just PV panels with a 5MW nameplate capacity per year are produced in Ontario) may trigger temporary higher system prices in 2011.

ESA Inspection
According to MicroFIT rules, a solar PV project is a subject of the Electrical Safety Authority (ESA) inspection. It simply means that it is not a do-it-yourself project. All hardware (including solar panels) should have appropriate certifications and wiring should be done by a certified electrician. Contact ESA to get more details.

Connection to a local utility
Currently this is the most uncertain part of the requirements. Utilities have not yet had experience with microFIT projects, therefore expect some (perhaps even major) delays. To avoid this, begin working with them ASAP.

The MicroFIT program is an essential part of Ontario's Green Energy Act, which should bring us to a greener, brighter and more sustainable future. The most significant ingredients of this program include: local content rule, fixed price, the Electrical Safety Authority (ESA) inspection and connection to a local utility. Make sure that you and your contractor/supplier understand these rules prior to jumping into a project.

To learn more about photovoltaic systems visit Solar PV Installation.