A little fit over microFIT

The Globe and Mail recently profiled a rising wave of resentment over a change in Ontario’s otherwise popular feed-in-tariff (FIT) program. A quiet change to the regime on July 2 reduced the rate paid to solar producers from 80.2 cents to 58.8 cents per kilowatt hour for ground-mounted solar photovoltaic, which has some producers up in arms. Solar PV hadn’t previously been separated into two distinct categories (roof- and ground-mounted).

The change won’t affect the rate being paid to existing producers, who sign a contract for at least 20 years guaranteeing a preferable rate, but it would affect those who are just beginning the process of singing up. That’s inflamed tempers faster than an efficient solar heating panel.

The Globe’s article quotes one would-be producer, John Verway of Copperhill Alternate Energy, in an open letter saying that the change is “a misguided and miscalculated change” that could “destroy the progress so many have made so far.”.

The guaranteed, relatively high rate being paid for renewable power is a cornerstone of Ontario’s Green Energy Act, designed to increase the production of renewable power and associated industries. Under the FIT program, the Ontario Power Authority guarantees that renewable power producers will be paid a subsidized rate in the long term. In the case of the microFIT program, these projects have to generate less than 10 kilowatts.

But while the contracts are meant to guarantee funding in the long term, the change to the payment schedule is happening immediately.

According to the announcement of the change, anyone wanting to comment on the change has until August 2. A subsequent announcement also outlines the government’s rationale for the change, and once the deadline has passed, any complaints made afterward will unfortunately just be hot air. And under FIT, wind power uses a different payment schedule.

Via The Globe and Mail