News: OPA Ontario Content changes to 60% creating problems for solar deals
Since Ontario passed the Green Energy Act on May 14 2009, the Province of Ontario is becoming one of the fastest adopters of solar technologies in the world. Many local and international companies are coming to Canada to offer their services and take advantage of this opportunity in a thriving economy such as Ontario’s economy. Following the economic crash of 2008, Companies and smart owner/landlords are creating the largest solar boom that has ever taken place in Canada.
As always, if anything succeeds in Ontario, we will soon see it expanding across the remaining Canadian Provinces.
Last year, OPA set the rules for selling electricity to OPA and connecting to the electrical grid under the Feed-in Tarrif (FIT) program. OPA set a minimum requirement of 40% Ontario content (meaning “Made In Ontario” products and services) in every system, in order for the PV solar system to connect to the grid within the year ending December 31, 2010.
The OPA though changed the rules though creating havoc in the industry. As of January 1, 2011, any system connecting to the Ontario’s electrical grid, must meet a minimum Ontario Content requirement of 60%.
Unfortunately, many companies and landlords had signed deals that promised the more “affordable” imported solar products and equipment while employing solar services mostly from Ontario. Now many of these leases signed must be modified in order to meet the new requirement.
This new development means that the profit expected from cheaper material will not be at the same range as agreed to. The equipment will not be more expensive as Ontario’s manufacturers are struggling to bring up their manufacturing plants to cover and meet the demand.
It appears that many of these fly by night companies will sell out their portfolios to the more solid solar energy developers and providers in Ontario.
It is almost certain that Ontario’s solar manufacturers will take advantage of the new Ontario content requirement change and, as we all know, when demand exceeds the supply, prices tend to go up.
Ontario Power Authority made a great move to energize Ontario’s economy for years to come, all this just in time before the new wave of American economic turmoil scheduled for 2011-2012. The Ontario Government must control equipment and manufacturing prices from reaching the sky, putting this truly amazing energy initiative in jeopardy.
solarPLANIT, along with the rest of Ontario’s population, welcomes the new solar power generation initiative and has a mandate to support solar initiatives using and promoting green and renewable products and services across Canada.
