Details of the new FIT program (Green Energy Act) have been released

[Heynow999]

here

http://www.powerauthority.on.ca/fit/Storage/11/10447_microFIT_Rules.pdf


If you want to put solar panels on your roof and sell power back to the grid in Ontario, these are the rules you have to follow.

The interesting thing is that there are provincial content requirements that I think present a good business oppourtunity. Specifically, either the solar panels, inverter or rack have to be made in Ontario. While I don't expect anyone to start manufacturing solar panels in thier garage, it would be fairly easy to made racks for solar panels. Some of the low end kits are very simple, not much more than aluminum bars with holes drilled in them. I don't know of any manufactureres here in Ontario.

The other interesting thing is on Jan 1,2011 (15 months from now) the solar panels will have to be made here in Ontario because the provincial requirements will rise to %60.

I have read the all the rules and I understand them pretty well so if anyone has questions please ask.

[es-jeruk]

why is there so many test for the fit proposal? I mean, connection availability, transmission/distribution availability, and economic test?? it's gonna take some time to get the approval, isn't it?

[Heynow999]

There are actually two different programs, FIT and MicroFIT. The FIT program is for installations larger than 10Kw, which is very big and would cost about $100,000. There are more rules and regulations in that program.

The MicroFIT program is for installations under 10Kw. It has fewer rules and is meant to make things easy for residential installations.

[Anonymouse]

Many people don't understand the tax implications of these generation systems. You need to pay income tax on the revenue generated, although there is a capital cost allowance of 50% (declining balance).

I think a tax holiday for residential generators is in order.

What happened to the early adopters on the standard offer program? Did they get screwed?

[Heynow999]

What happened to the early adopters on the standard offer program? Did they get screwed?

Yes.

The number and size of Standard offer contracts are available online. I calculated how many kilowatts were installed under that program and then how much it would cost to pay those people .80 cents a Kw as opposed to the .42 cents Kw they get now. The number was in the hundreds of millions of dollars, so the OPA is not going to give away 100 million unless they are forced to by the province. That doesn`t seem like it will happen.

Another interesting question is what is going to happen to all the systems that were installed in the last 9 months? These systems won't qualify for FIT because they will not meet the provincial requirements. It is tough to meet the requirements now, it would be a huge fluke if someone installed a system before the rules were out and now it complies.

[Heynow999]

Yes.

The number and size of Standard offer contracts are available online. I calculated how many kilowatts were installed under that program and then how much it would cost to pay those people .80 cents a Kw as opposed to the .42 cents Kw they get now. The number was in the hundreds of millions of dollars, so the OPA is not going to give away 100 million unless they are forced to by the province. That doesn`t seem like it will happen.

Another interesting question is what is going to happen to all the systems that were installed in the last 9 months? These systems won't qualify for FIT because they will not meet the provincial requirements. It is tough to meet the requirements now, it would be a huge fluke if someone installed a system before the rules were out and now it complies.

Just an update

The OPA has decieded to allow anyone with an old RESOP contract, and anyone who installed a system in the last 9 months before the provincial content rules were in place, to get in on the new program. It really is amazing that the government really seems to be listening to the people and making changes to the program. I think this could be a really big program.

They have even changed the requirements around made in Ontario panels to allow existing companies that only assemble panels here in Ontario to count towards domestic content

[lagos]

Just an update

The OPA has decieded to allow anyone with an old RESOP contract, and anyone who installed a system in the last 9 months before the provincial content rules were in place, to get in on the new program. It really is amazing that the government really seems to be listening to the people and making changes to the program. I think this could be a really big program.

They have even changed the requirements around made in Ontario panels to allow existing companies that only assemble panels here in Ontario to count towards domestic content

Does the domestic content active for FIT projects that are over 10kW? I heard that they won't impose the requirements until Jan 1, 2011. any truth to this?

[Heynow999]

Does the domestic content active for FIT projects that are over 10kW? I heard that they won't impose the requirements until Jan 1, 2011. any truth to this?

I only follow what is happening with MicroFIT, as those are the size of systems we want to install. A FIT size system would cost $100,000 and up and be fairly large and beyond our capability. What I can tell you is they are raising the provincial content requirement for MicroFit from %40 to %60 on Jan 1, 2011. It seems like a long time from now, but that is only 14 months. What that means is in the next 14 months you can use cheaper imported panels to install a solar system. This is basically short oppourtunity to install a cheap system, as prices for panels will surely rise once you have to use panels that were made here in Ontario.

If anyone is considering installing a system, now is the time.

[pluto]

Problem for me is I'm not sure if I will stay in my current house for 20 years

What I'd really like to know is where I can find out about opportunities to directly invest money in a solar electricity generating project.

I'm sick of investing in mutual funds that lose my money or line the pockets of CEOs of polluting companies (or worse, both at the same time)

If anyone wants a partner for their project, let me know.

[pluto]

Many people don't understand the tax implications of these generation systems. You need to pay income tax on the revenue generated, although there is a capital cost allowance of 50% (declining balance).

Question about the 50% Capital Cost Allowance - can you use the CCA only to offset the income from the microFIT project or can it be used to decrease the income tax payable on other sources of income?

E.g. if I install a 3kW system which generates ~ $3000 per year (pre-tax) income, can I use the CCA to deduct 50% of the cost of the system (more than $3000) in year-one from my taxable income? Or does the deduction have to 'match' (not exceed) the yearly income from microFIT?