Take the example of Germany, until quite recently the world growth leader in solar power installations and solar panel technology. Riding a decade-long solar power boom, German panel manufacturers had been forced to double and redouble their production capacity to meet demand. Then, over the past year, the German government made sudden and dramatic cuts to solar power subsidies, prompting some providers to shut their doors and those that remained to downsize and cut every corner they could.

The unexpected drop in demand for solar panels coincided, to devastating effect, with a sudden influx of cheap imported panels from Chinese suppliers selling at, or even below, cost. Germany’s burgeoning panel manufacturing industry was crippled, forcing suppliers to unload panels at fire-sale prices and close down their newly built plants. Top German solar panel brands Q-Cell and Solon have declared bankruptcy, and international firms like First Solar have taken heavy losses on their German holdings. At this point it is uncertain how long it will take the renewable energy industry of Germany to recover. And the stories in Italy and Spain haven’t been much different.

It’s no wonder then that observers raise an eyebrow at the timing of the Government of Ontario’s decision to launch the second phase of its own incentive plan. FIT 2.0—as the program renewal has been dubbed—continues to subsidize green energy, though at a substantially reduced rate. But Ontario Energy Minister Chris Bentley has taken lessons not only from phase one of the program but also from observing what has and hasn’t worked for countries like Germany. Perhaps, Ontario has become a beneficiary of the solar collapse that has happened elsewhere in the world.
Yes, the subsidies are being reduced. As they should be. The goal for solar power is to be able to compete on parity with conventional energy sources. The subsidies have always been intended as a short-term incentive for growth and innovation, not a permanent crutch. By reducing the subsidized rate aggressively, but not wantonly, the government has set a stretch objective that the industry can bear, allowing market forces to drive innovation and cost reduction.
Another insulating force that has kept Ontario secure against the implosion that has happened elsewhere is a very sensible provincial regulation requiring solar power providers to purchase their materials domestically. Ontario’s panel manufacturers, however are able to take advantage of the global drop in component prices to produce high-quality panels at a much lower cost. The result is that costs shrink while the province’s nascent manufacturing enterprises and the jobs they have created remain safeguarded.

The solar power industries in other countries have also been damaged by other factors such as complicated incentive programs and governmental meddling in technological development. In the United States, for example, the existing incentive program uses a combination tax credit system that rewards solar power installation owners with incentives based on capital invested. In other words, the larger and more expensive an installation is, the greater the tax credit. Under a system like this, the drive towards efficiency and improved technology is obviously dampened. The Obama administration has also taken a direct interest in specific technologies, investing heavily in manufacturers like California-based Solyndra and Arizona-based First Solar. Solyndra has since filed for bankruptcy and First Solar’s state-of-the-art thin-film technology has been severely devalued by a 50% cost reduction in traditional photovoltaic panels. These failures have resulted in such backpedaling on the subject of solar power in U.S. government circles, that it is uncertain whether the incentive program will continue at all. What’s more, artificially propping up these particular technological initiatives may have stunted research in more profitable directions.
Ontario, on the other hand, provides incentives on a strict per kilowatt-hour basis and lets the market drive innovation. It is up to the developers of projects in Ontario to determine how best to optimize photovoltaic production with the available technologies. The balance between incentive-based policy-setting and letting market forces guide the industry is a delicate one, but the Ontario Power Authority with FIT 2.0 is walking that tightrope.

So, despite the worrisome state of solar elsewhere in the world, intelligent energy policies in Ontario have somewhat protected the province and left us well poised to move forward into a sustainable future. In fact, though we would never have wished it on them, the hard learnings of others have, by driving down prices on the fundamental components of solar panels, created a perfect climate for solar power in Ontario. With that in mind, there couldn’t be a better time for the Ontario Power Authority to roll out FIT 2.0 and set a clear roadmap into tomorrow for the renewable energy sector.

Peter Goodman is the President and CEO of Solar Power Network, a Canadian company specializing in developing distributed rooftop solar installations to increase the efficiency and sustainability of Ontario’s power generation.

The insane thing is that six large coal-fired generating units are still operating in Ontario. In fact, coal power plants are the single largest polluter in the province. We get excited about the benefits of hybrid cars, but the truth is that these six coal units, even running at just 20% of capacity, produce more toxic emissions than a million conventional SUVs.

These figures, incidentally, don’t even account for the effects of mining and transporting the coal, activities which devastate vast areas of wilderness and pump hundreds of thousands of tons of carbon dioxide into the atmosphere every year. It’s all too easy to forget these secondary costs of fossil fuels when comparing them with green energy. Burning coal burns us back every step of the way.

And the danger isn’t just ecological; it’s a real threat to our health and well-being. The Ministry of the Environment estimates the death toll of air pollution in Ontario at 1,900 lives per year, including 25 victims under the age of 19.

“So, why are we still burning coal?” that fifth grader would be right to ask. The answer, of course, is complicated. The government has promised to shut down the remaining coal plants by the end of 2014, but this is a timeline that’s been pushed back more than once and is a good measure too long already. The reality is that Ontario still needs that energy to keep up with peak demand. The province uses far more energy during the day than it does at night and far more energy during the summer months than the winter.
Our other energy sources are either constant (as with nuclear and hydro) or at their most prolific on winter nights (as with wind).

I’m sure you can connect the dots yourself, so I won’t spend too much time belabouring the point that solar power produces its greatest yield during the times of peak demand. What I will mention though is that rooftop solar, when installed at industrial addresses, also produces its yield at the site of peak demand, thus saving on transportation and transmission costs.

The best route to eliminating the coal plants in Ontario is through aggressive installation of solar panels. If we can install solar generators on 2,800 rooftops in Ontario, we can generate enough power to take one of the six remaining coal-fired units offline. That’s real progress, real pollution reduction, and real lives saved. It’s also an insanely ambitious goal.

With 230 installations totalling 60 megawatts of power generation, we’re not quite a tenth of the way there. But worthwhile work is inevitably hard work, and the best thing about fighting a demon as pernicious as coal is that even the smallest victory brings with it tangible reward. Every time we add another rooftop to our network we can think of it as 188 minutes of clean air. And while we’re breathing that in nice and deep, we can reflect on a future, just a little bit closer now, when we can answer the fifth grader’s “Why are we still burning coal?” with: “We aren’t.

Of course, as progress marches on and the industry continues to develop, new technologies become available and the cost of renewable installations decrease. This is how things should be, and it is an indication that the FIT Program is working as intended. So, understandably, the province decided to undertake a review of the rates offered to new installations under the FIT Program. We knew that the rates would drop, but there was no way of knowing by how much, leaving hundreds of pending installation contracts in limbo.

The new rate, announced last week, of 53.9¢/kWh is lower than the 57.0¢/kWh that Solar Power Network had recommended, but it is high enough that rooftop solar remains viable and desirable. By leveraging new technologies and taking advantage of our increased experience and efficiency, we will be able to move forward with the vital work of developing Ontario’s independent renewable energy infrastructure.

It’s important to realize that things could have turned out much worse. Political rhetoric and pressure made it seem at times that the very existence of the FIT Program could be hanging in the balance. Though solar energy science is advancing by leaps and bounds, the elimination of the Feed-In Tariff at this point would be a death blow to the burgeoning industry. Many of our competitors fled to the hills over the past year in anticipation of a new energy policy less friendly to green producers. Solar Power Network, however, stayed the course, putting our faith in Ontario’s lawmakers to see to it that the province remain a leader in the technology that is going to power our future and employ the workforce of today. We are thrilled to see that our faith was not misplaced.

Read Full News Article

TORONTO, Feb 15, 2012 – Solar Power Network (SPN) is pleased to announce the completion of its first site, 230 kW comprising 910 solar panels , across 23,000 square feet of rooftop space at Plaza Ontario. The announcement highlights a 20-year commitment to generating sustainable energy through the Ontario Feed-In-Tariff (FIT) program and EnWin’s continued committed to connecting solar generation capacity. The rooftop solar panel system supports Ontario’s goals of eliminating the province’s dependence on coal-fired power and the related emissions, which are the principle ingredient in the smog that causes Ontario air quality advisory alerts.

“We’re very proud to participate in the Solar Power Network, contributing efficient, clean and sustainable energy to Ontario’s electrical grid,” says Paulo Fontana, Co-owner and GM of Plaza Ontario. “With no upfront costs or associated project costs for us, and no structural impact to our rooftop, turning unused rooftop space into a source for energy generation is a low-risk, high-reward undertaking. It makes good business sense and good environmental sense.”

Plaza Ontario’s Provincial Road location in Windsor, has not only been outfitted with 910 solar panels, but is also actively monitored by Solar Power Network to ensure peak efficiency at all times. To minimize power lost in transmission, as is the case with traditional power delivery, Ontario’s FIT program enables energy collected to be distributed to the local grid, and consumed by the building itself and then homes and businesses closest to the site.

“As Ontario continues to shift its priorities toward more sustainable sources of energy, we have seen a growing interest in our rooftop lease offer from similar companies across the province,” says Peter Goodman, President and CEO, Solar Power Network. “Our unique approach uses the latest solar technology and offers customers an innovative lower panel angle design, which results in no structural impact to their rooftop while maximizing the revenue from their leased out roof space.”

Plaza Ontario’s involvement in the SPN rooftop solar program is a great match for one of its key objectives, which involves sourcing natural and sustainable flooring materials for Ontario homeowners. The solar program, which is owned and operated by Solar Power Network, will produce 264 MWh of power each year – equivalent to displacing 132 metric tonnes of greenhouse gases, the root cause of air pollution.

About Solar Power Network

Solar Power Network Inc. is a Canadian-owned private company, based in Ontario and specializing in generating clean energy, using proven solar technologies. Solar Power Network partners with local businesses, leasing and converting idle roof-tops into solar power generation spaces. The company offers generous, up-front payments and continual maintenance services. Led by a team of professional engineers, Solar Power Network offers building owners high financial return with minimal risk and structural impact.

For more information visit: solarpowernetwork.ca.

EnWin Utilities Ltd.

EnWin Utilities Ltd. is Windsor’s Local Distribution Company, responsible for the distribution of electricity, as well as the service and maintenance of Windsor’s electricity distribution infrastructure. EnWin also provides managed services for the Windsor Utilities Commission.

For further information:
Katie Gates, Citizen Optimum
katie.gates@citizenrelations.com
416.934.8035

In a recent industry review, Solar Power Network took a hard look at the overall solar industry, the needed commercial rate decrease to create an enduring program and overall global cost parity, and the ways by which this can all, simultaneously, be met to solidify the industry’s development. In order to create a strong foundation for the industry, Solar Power Network estimates that the current commercial rate must decrease to 60¢/kWh in the immediate future – a 20% reduction.

For this to happen, the FIT program must be allowed to run its full course, as established, before facing scrutiny on a political level in order to fully develop its potential. With this legislative stability and a commitment to the future of green energy in Ontario, four key cost centres will be addressed in an immediate and significant way. These costs include:

Manufacturing – As the industry faces a lack of consistency in orders due to the unpredictable nature of the timing for Ontario Power Authority approvals, which is compounded by the recent announcement of retroactive changes to the criteria for approvals, this makes it difficult for manufacturers to predict the volume of needed raw materials, manpower and ultimately, future revenues. Due to this lack of certainty, manufacturers are unable to lower their cost to the industry. These companies don’t know when the next batch of projects will be approved, and without this consistency, manufacturing prices remain high, even by global standards. Given stability within the program, these rates would quickly drop.

Engineering – With a lack of predictability in upcoming project and streams of revenue, much like with manufacturing, engineering costs for creating solar systems unique to each rooftop space, remain at a high. The lack of stability makes it difficult for these firms to create a streamlined service given the ebb and flow of the ONTARIO POWER AUTHORITY approvals process. With a steady stream of clients and thus, approvals, engineering costs would also decrease.

Financing – The lack of legislative stability within the FIT program effects financing in probably the most profound way of all the cost factors involved. Due to instability alone, major financial institutions consider the solar industry a high-risk investment and without the support of the banks that support the growth of the vast majority of Canadian industry, the solar industry must work with private investors, which comes at a premium. Without a firm and ongoing commitment from the government, these costs will remain high. Once stability within the program is achieved, the major banking players will get involved, resulting in a quick and dramatic decrease in costs, which in turn, results in a decrease overall commercial rates.

Installation – Much like manufacturing and engineering, the cost of installation remains high due to the instability of incoming projects from Ontario Power Authority approval. Given consistent and lasting legislation, the cost of installation will fall as well.
A decrease in commercial rates is within our reach. With the ongoing and continued support of the Ontario government, the potential for the FIT program is astronomical. The government has officially made the decision to close our dangerous coal-fired power plants, and something must replace that energy source.
The time for stability is now. With progressive companies like Solar Power Network working to create a clean, healthy environment for future generations, the infrastructure is all in place. With global cost parity within our reach, how can we deny an energy source as renewable and reliable as the sun. ]]> http://www.solarpowernetwork.ca/2012/blog/commercial-rates-for-solar-energy-will-decrease-quickly-and-dramatically-given-legislative-stability-2/feed/ 0 http://www.solarpowernetwork.ca/2011/news/solar-power-network-announces-its-network-has-successfully-reached-230-ontario-companies/ http://www.solarpowernetwork.ca/2011/news/solar-power-network-announces-its-network-has-successfully-reached-230-ontario-companies/#comments Thu, 01 Dec 2011 22:05:02 +0000 dc-admin http://www.solarpowernetwork.ca/?p=378 TORONTO (October, 2011)
These like-minded companies have joined our growing network of companies who are committed to building a kinder way to power our province’s future together. Solar Power Network is turning 6 million square feet of underutilized rooftops into spaces that will generate 60MW of renewable energy.

Energy from the sun is the cleanest, most abundant, renewable power source available. Solar Power Network is an Ontario-based, power generation company. Using proven solar technology, we partner with local businesses to provide clean energy into the electricity grid.

SOLAR POWER NETWORK (SPN) is a distributed solar power company using the leased rooftops of industrial and commercial buildings to provide clean, renewable energy to Ontarians. Over the next four years, SPN will invest over 400M into 90MW of power on the unused rooftop space of 360 buildings. The generation of 90MW of power offsets 59,580 tonnes of carbon dioxide – equivalent to powering 14,400 homes.

To read the full press release click here.

“As we continue to devote time and effort to preparing our province for future generations, it’s so important that organizations like the Adoption Council of Ontario, who develop and nurture our youth, grow and flourish,” says Peter Goodman, CEO, Solar Power Network. “At Solar Power Network, our mission is to create a better future for the next generation and that makes our partnership with the ACO, which strives for the same ideal, a natural fit. We’re thrilled to be involved with such a worthy cause.”

To view the full press release click here.

For more information on AdoptWalk visit www.adoptwalk.ca

“Building owners don’t have to worry about how much power we’re generating, or what kind of panels we’re using, or what our deal is with the Ontario Power Authority,” said Peter Goodman, CEO of Solar Power Network. “They’re literally getting paid to be green, because I’m renting their rooftop.”

For SPN, having the public and media take an interest in solar panel technology is an encouraging sign of what’s to come for our industry. With a number of high profile installations in recent news and a strong history of governmental support, SPN is proud to lead the charge toward furthering public awareness to maximize unused rooftop space, and take Canada to the forefront solar power production.

To view the full article click here.