The Ministry of Energy has released the numbers for the anticipated rate reductions in the FIT program. New solar projects will see rate reductions of over 20 percent, wind projects will see 15 percent. The FIT program was launched in 2009 and offers green energy producers above-market rates to feed electricity into the grid.
The rate for large solar installations is dropping from 44.3 cents-per-kwh to 35 cents, and from 13.5 to 11.5 cents for wind power projects.
Key points of the announcements include:
– Rate cuts only apply to new projects
– Rates for hydropower, biogas and biomass remain unchanged
– Priority is being given to new projects with aboriginal support
– The commitment to renewable power targets is being affirmed
The Canadian Solar Industries Association (CanSIA) released a statement welcoming the announcement: “We are confident in our industry’s ability to adapt and innovate, but the government will have to ensure the efficiencies in the application and approvals process announced today are implemented properly,” said Michelle Chislett, CanSIA chair. CanSIA reiterates the importance of investment in renewable energy generation: “Solar PV creates about 25 jobs per installed MW, an estimated 5 more jobs per MW than non-renewable energy sources.”
Ontario’s FIT program has approved several hundred projects to date, including over 180 large-scale projects, worth over $8 billion in total. The benefits of the FIT program can be combined with government incentives like the SR&ED program in developed the technology and energy harnessing processes required to continue to grow the renewable energy industry.