Sep 29, 2009

Ontario Launches Feed-in Tariffs

First System of Advanced Renewable Tariffs in North America
Ontario today launched the province's long-awaited program of feed-in tariffs in response to its ground-breaking Green Energy Act.

The tariffs are precedent setting in North America not only for the number of different technologies listed, but also for the prices offered. Solar energy advocates will be particularly pleased. Ontario's proposed tariffs, if implemented, will be the highest in North America. For rooftop solar they will be comparable to those offered in Germany and France.

Ontario is expecting a boom in rooftop solar installations as a result of the program. The province will pay CAN $0.80/kWh (US $0.69/kWh; €0.51/kWh) for electricity from small rooftop solar systems less than 10 kilowatts for a period of 20 years.

Through the feed-in tariff program, Ontario will also pay the highest prices for wind energy, and biogas in North America.
The tariffs represent the best estimates by engineers and economists of what it costs to develop renewable energy under Ontario's climatic conditions.

Unlike programs in the United States, there are no subsidies from either the federal or local government used in the feed-in tariff program.

In a first for North America, the new program includes feed-in tariffs specifically for offshore wind energy: CAN $0.19/kWh (US $0.16/kWh; €0.12/kWh). Ontario borders all the Great Lakes except Lake Michigan.

In the run up to the G20 in Pittsburgh and the Copenhagen climate conference later this year, Smitherman has stressed the theme that Ontario's new feed-in tariff program is just one part of what is North America's most aggressive climate change policy.

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