Ontario solar pres


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Ontario solar pres

  1. 1. ONTARIO PV MARKET July 2010 Prepared by: Marc Arza
  2. 2. ONTARIO PV MARKET Irradiation info Yearly irradiation Irradiation map
  3. 3. ONTARIO PV MARKET Canada market information* - Canada’s total PV power installed capacity reached 94.57. MW in 2009 compared to 32.72 MW at the end of 2008. The grid- connected market now accounts for 87% of the market in 2009 compared to only 33% in 2008. This is a significant growth sector that is spurred by the new Province of Ontario’s feed-in tariff launched in 2006 and expanded in 2009. - The installed price for systems range between CAD 6 000 to 8000 per kilowatt for grid-connected installations, and CAD 16000 per kilowatt for off-grid systems that include storage. *Source: PV Power in Canada: Int'l Energy Agency.
  4. 4. ONTARIO PV MARKET Ontario market information (1) Yearly installed capacity Market segmentation
  5. 5. ONTARIO PV MARKET Ontario market information (2) - The subsidies provided by the Ontario Power Authority for both rooftop and ground mounted photovoltaic installation led to a huge market increase of 791% in Canada in 2009. *Source: PV Power in Canada: Int'l Energy Agency.
  6. 6. ONTARIO PV MARKET Ontario electric tariffs Source: Ontario Independent Energy System Operator (http://ieso.ca)
  7. 7. ONTARIO PV MARKET Federal programs: EcoENERGY rebates - EcoENERGY* for Renewable Power will invest $1.48 billion to increase Canada's supply of clean electricity from renewable sources such (...) solar photovoltaic. It will encourage the production of 14.3 terrawatt hours of new electricity from renewable energy sources, enough electricity to power about one million homes. - EcoENERGY for Renewable Power will provide an incentive of one cent per kilowatt-hour for up to 10 years to eligible low- impact, renewable electricity projects constructed over the next four years, April 1, 2007 to March 31, 2011. * http://ecoaction.gc.ca/ecoenergy-ecoenergie/power-electricite/index-eng.cfm
  8. 8. ONTARIO PV MARKET Federal programs: Acc. capital cost allowance - Allows taxpayers an accelerated write-off of the capital cost of photovoltaics equipment. - Taxpayers can deduct the cost of eligible equipment from taxable income at up to 30 percent per year, on a declining balance basis. - The following costs are eligible: the capital cost of assets normally includes all costs associated with the acquisition and installation of the qualifying system, including: related "soft costs" for design, engineering and commissioning of the above; and costs of other services required to make the system operational. - The asset acquired must be new.
  9. 9. ONTARIO PV MARKET Ontario Feed-in Tariff (FIT) / (1) - Once entered into a FIT contract, you will receive a fixed price for the electricity you produce over a 20-year contract period. - Requirements: > Have your project connected to your local electricity distribution system, a host facility or the IESO-controlled grid and separately metered for data collection at your expense. > Enter into a 20-year FIT contract with the OPA. > In the case of rooftop solar PV projects, only one FIT application for rooftop solar PV will be allowed for each property. > For solar PV projects, only 10 MW per property will be allowed. > For micro PV (10 kW or smaller) projects, “local Ontario” requirement will be at 50%. For larger projects, will be at 60%. *http://fit.powerauthority.on.ca
  10. 10. ONTARIO PV MARKET Ontario Feed-in Tariff (FIT) / (2)
  11. 11. ONTARIO MARKET Ontario Feed-in Tariff (FIT) / (3)
  12. 12. ONTARIO PV MARKET Competitors & business models - A quick look at competitors shows different business models present in the commercial rooftop photovoltaics market. - Analized competitors: > Canadian Solar: http://canadian-solar.ca > Helios Energy: http://heliosenergy.ca > AMP Solar Group: http://ampsoalrgroup.com - Three basic business models: a) Full site-host ownership b) Rooftop lease c) Joint partnership (site-host & PV installer shared investment).
  13. 13. ONTARIO PV MARKET Business models (1) - Full site-host ownership:
  14. 14. ONTARIO PV MARKET Business models (2) - Rooftop lease & joint venture:
  15. 15. ONTARIO PV MARKET Electrical contractor license - Any photovoltaic installer in Ontario needs a valid Electrical Contractor License*. - Basic requirements: > Be a Master Electrician, or employ at all times at least one Designated Master Electrician. > Have a place of business in Ontario. > Have public liability and property damage insurance coverage of at least $2,000,000. > Be registered with the Workplace Safety and Insurance Board. * http://www.esaecra.info/site/005b.php?s=11
  16. 16. ONTARIO PV MARKET Open & unanswered questions - Are federal EcoENERGY rebates compatible with Ontario's FIT? - Does the feed-in tariff contract price increase with inflation? - What's the amortization period in years for the federal accelerated capital cost allowance program? - What's the FIT administrative process lead time for projects from 1 to 5 MW? 1 or 3 years?
  17. 17. ONTARIO PV MARKET Timeline for coming months
  18. 18. ONTARIO PV MARKET PV industry associations & resources - Canadian Solar Industries Association (CANSIA): http://cansia.ca - Go Solar Ontario Program: http://gosolarontario.ca - Ontario Power Authority (OPA): http://powerauthority.on.ca - Ontario Sust. Energy Association (OSEA): http://ontario-sea.org - Independent Energy System Operator (IESO): http://ieso.ca - Ontario Ind. Roofing Contractors Ass.: http://ontarioroofing.com