Proposed New Price for microFIT Ground-Mounted Solar PV Projects

The Ontario Power Authority has created a new price category for microFIT ground-mounted solar PV projects. Ground-mounted solar PV projects of 10 kilowatts or less will be eligible to receive a proposed price of 58.8 cents per kilowatt-hour (¢/kWh). Rooftop solar PV projects, as defined in the microFIT Rules, version 1.4, will continue to be eligible for 80.2 ¢/kWh.

There will be a 30-day comment period on the proposed the new price category. microFIT application intake will continue during this time.

The microFIT Program is based on the principle of a reasonable rate of return. Program uptake to date has surpassed what the OPA had anticipated when it launched the program. More than 16,000 applications have been submitted to date. Virtually all of the projects are for solar PV, and the size of the projects indicates that the majority of applications are for ground-mounted projects, rather than for rooftop installations.

The cost to install a ground-mounted solar PV project is lower than the cost to install a rooftop project. This new price category will provide ground-mounted solar generators with the same reasonable rate of return of approximately 11 percent that other generators will receive over the 20-year term of their contracts. The OPA believes the proposed new price for groundmount solar PV projects is fair, reasonable and more accurately reflects the costs associated with ground-mounted projects. It will help maintain the long-term stability of the program.

Consistent with version 1.4 of the microFIT Rules, microFIT applicants with ground-mounted microFIT projects who already have an executed a contract or who have received a conditional contract offer from the OPA will continue to be eligible for the original price of 80.2 ¢/kWh. 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 be eligible to receive the proposed new price of 58.8 ¢/kWh. Rooftop solar PV projects, as defined in the microFIT Rules, version 1.4, will continue to be eligible for 80.2 ¢/kWh.

The Ministry of Energy and Infrastructure supports this decision because it ensures that the microFIT Program meets the original program goals and provides proper value to generators and ratepayers. The OPA believes that introducing this new price category now is in the best interests of the program, generators, manufacturers, lenders and ratepayers, as it will allow the program to realize the value it was intended to deliver on a long-term and sustainable basis.

The OPA will be holding webinars on July 6 and July 8, 2010 to discuss the introduction of this new price category and answer questions. The OPA will also accept comments by email and regular mail. Details on how to participate in the webinars or submit comments can be found here.

July 2, 2010 Ground-mount news release