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Ontario Power Authority’s “Feed-In Tariff” [FIT] Program

The Green Energy & Green Economy Act requires Ontario’s electrical utilities to develop programs and procedures to allow renewable energy facilities to be developed, connected to the grid, and to be paid reasonable prices for the various technologies.

In Ontario, generators of electricity wanting to connect to the grid must sell their power to the Ontario Power Authority [OPA]. The Green Energy & Green Economy Act required the OPA to develop a program to offer prices for different renewable energy technologies and sizes of installation that reimbursed development and installation costs, while at the same time protected Ontario electricity consumers from excessive profits by renewable energy generators.

The OPA has set-up a program with Local Distribution Companies [LDC], such as Festival Hydro, Hydro One (rural areas), London Hydro, Westario Power, etc and the sale of electricity to the OPA may be directed through the LDC.

The FIT Program presently offers the following prices on a guaranteed 20-year contract (Waterpower is a 40-year guaranteed contract) :

Renewable Source Location Size Contract Price
¢/kWh
Solar anywhere <= 10kW 80.2
rooftop > 10kW - <= 250 kW 71.3
rooftop 250 kW - <= 500 kW 63.5
rooftop > 500 kW 53.9
ground > 10kW - <= 10 MW 44.3
Wind onshore all 13.5
offshore all 19.0
Hydro anywhere <= 10 MW 13.1
anywhere > 10 MW 12.2
Biofuel Biogas - on-farm <= 100 kW 19.5
Biogas - on-farm > 100 kW - <= 250 kW 18.5
Biogas - anywhere <= 500 kW 16.0
Biogas - anywhere > 500 kW - <= 10 MW 14.7
Biogas - anywhere > 10 MW 10.4
Biomass - anywhere <= 10 MW 13.8
Biogas - anywhere > 10 MW 13.0
Landfill - anywhere <= 10 MW 11.1
Landfill - anywhere > 10 MW 10.3
 

Selling to the Grid and Net Metering

The Feed-In Tariff [FIT] program requires a direct connection into the grid from the generating equipment and thus a direct sale of electricity to the Ontario Power Authority, or through a Local Distribution Company [LDC].

Net Metering is the generation of electricity that flows through a house or other property, with any unused power flowing to the grid as a credit. If more power is needed than is being generated at the location, the additional power required is drawn from the grid. The intention is that at the end of a year, the net draw from the grid is zero, and the property owner has no kWh consumption charges to pay, but all other charges levied. Net Metering effectively credits the property owner at the normal consumption rate levied, eg 6.0¢/kWh.

In the case of Solar Photovoltaic [PV] generation under 10kW, a FIT contract pays up to 80.2¢/kWh, thus it makes sense to sell all power to the grid at the higher price, and just pay the electricity bill as normal. As the connection point to the grid will be close to where power is drawn by the property, most if not all electricity generated will be used by that property. Some electrons will disappear into the grid, but the power generated will be paid at the FIT price.

   

Benefits to the Environment

Renewable Energy by definition does little or no harm to the environment, thus protecting it.

Pollution has an immediate and lasting effect near & far on the land, air, water, and the health of people, animals, and crops. Renewable Energy does not produce pollution and therefore has no adverse environmental footprint. There are safeguards in place to protect people from sound that some equipment generates.

Any type of equipment manufacturing has an environmental impact : the environmental impact and cost of manufacturing renewable energy equipment is recovered within a few months of operation, replacing pollution-causing and unsustainable energy generation.

For every kWh of electricity generated by renewable means, one less kWh required by unsustainable means, such as coal or oil-fired electricity generators, which are a significant cause of Greenhouse Gas Emissions [GHG] and toxins such as nitrous oxides, acid rain, etc.

   

Benefits to Countryside Energy and its Members

Projects developed by the Co-operative will make use of the FIT Program.

This will realize revenue at the prescribed amounts, with guaranteed prices for 20 years, 40 years in the case of waterpower. This provides opportunities for Countryside Energy’s members to participate in the program by purchasing Preference Shares which provides equity/capital to develop renewable energy projects and receive a return on investment as dividends.

Members who are unable to install renewable energy t their homes (eg tree-shading preventing viable PV installation; in a sub-division where a windturbine is affected by turbulence around buildings), but want to generate their own green energy, can do so virtually by buying Preference Shares for the Co-operative to install renewable energy via its projects.  An example is a homeowner, instead of purchasing a personal renewable energy facility for their home, invests that amount in the Co-operative which instals and generates the electricity for them, and receive a dividend as a return on their investment.  Thus a homeowner can justifiably say that they are generating their own renewable energy, protecting the environment, setting an example and creating a positive legacy.

This also makes allowance for a Member moving house : a renewable energy installation's FIT contract is defined at the point of connection to the grid, and moving that connection would break the FIT contract and a new contract at the new location applied for and taken out with the Ontario Power Authority, plus any removal and re-installation costs.  Investing in Countryside Energy Co-operative removes the risk and consequent financial costs of a member moving house as their investment is with the Co-operative's renewable energy projects on sites leased for the duration of the FIT contract, with first options to renew.

Members can also transfer their investment as a legacy to their children, grandchildren, or whoever, and the Co-operative will facilitate this.

   

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