The Ontario Power Authority (OPA) is “moving forward with its commitment to review the Feed-In Tariff (FIT) Program” (read here), concerning the FIT review (scheduled for every two years) announced October to investigate price reduction, long-term sustainability, clean energy job creation and the renewable approval process. Renewable Energy World predicts late February will bring about provincial government directionality for changes to the FIT program, allowing Ontario’s renewable energy sector to resume momentum.
The feed-in tariff, similar to the standard offer contract, advanced renewable tariff or renewable energy payments, is a system conceived to incentivize development of renewable energy-fueled distributed electrical generation projects and stimulate economic development of associated industry. Renewable energy sources include biomass, biogas, landfill gas, on-shore wind, solar photovoltaic (PV) and waterpower. The Ontario FIT program enables individuals and businesses generating electricity to sell the energy generated back to the province at a fixed rate over a 20-year contract.
Nova Scotia is the second province to introduce a feed-in tariff incentive through its Community Feed-in Tariff (COMFIT) program, and the first policy in North America to specifically pay for community-owned tidal power plants, with the initial round of approvals having been in December 2011.
In light of possible rate reductions in the OPA’s FIT program, renewable energy development costs could be offset by taking advantage of the SR&ED program as a means of funding, with the potential of receiving tax credits of up to 72% of labour and overhead costs related to eligible scientific research and experimental development endeavours. As a burgeoning, R&D-heavy industry, companies within the renewable energy sector have a prime opportunity to take advantage of the innovation federal and provincial tax incentives. NorthBridge is a board-approved Canadian Solar Industry Association (CanSIA) and Ontario Sustainable Energy Association (OSEA) member, advocating SR&ED within the renewable energy sector through workshops, webinars, and the development of industry-specific eligibility guidelines.
If Ontario has to wait with baited breath for renewable energy policy reform – let’s hope it’s with clean air.