by DAVID OXTOBY
Energy Minister Brad Duguid announced on Feb. 24 that the government has offered Feed-In Tariff contracts to another batch of applicants. This is good news for those who made the list – including the 33 landowners across the province with larger ground-mounted solar projects ranging in size from 250 kW to 10 MW. But it provides no comfort to some 1,000 holders of smaller microFIT contract offers – mainly farmers – who remain in a regulatory limbo.
The background to the farmers’ plight is this: they were granted conditional contracts, followed the rules, spent time and in many cases real dollars on their solar power systems. With installation deadlines looming, they were completely sideswiped when they received letters from their local utilities in early February telling them their systems cannot be connected to the grid at present.
Farmers who paid for and even began installing their systems are out of pocket for amounts ranging up to $90,000. Connection to the grid may be allowed sometime in the future on a case-by-case basis, but no one knows when, or what share of the grid upgrade costs the farmers might be asked to pay. The farmers do not know when they might begin receiving the electricity revenues they were counting on to repay their investments. Many are wondering whether they have grounds on which to make a claim against the Ontario Power Authority (OPA), which runs the FIT program.
If a challenge is launched, one document that will be central to their argument is an announcement the OPA made last Nov. 8, granting an extension of the deadline by which microFIT projects needed to be installed. Specifically, the OPA said that projects with conditional microFIT offers would qualify for approval if three hurdles were met by May 31, 2011:
1. The project is installed.
2. An Electrical Safety Authority connection authorization has been issued.
3. A connection request has been made to the local distribution company.
The key point is the last one, namely that “a connection request has been made.”
Because of the comparatively small size of these solar power systems, the OPA’s informational materials had always suggested that all requests for microFIT connections would be approved. Rejections of requests to connect were neither contemplated nor addressed.
It is true that the microFIT offers were conditional, but there was no indication that receipt of approval to connect was one of the conditions. No one expected to be declined. Given that equipment needs to be ordered many weeks in advance, and site preparations take time, many farmers seeking to meet the May 31 deadline had no choice but to start their projects before they received responses to their requests to connect.
Their current frustration is well-founded, and they deserve better treatment. For the FIT program to be a success over the long term, the connection challenges need to be solved in a way which works not just for the utilities but also for the farmers who were simply following the rules they were given.
David Oxtoby is CEO of CarbonFree Technology Inc., a Toronto-based company which develops and acquires FIT and microFIT projects across Ontario.
Comments
I also had a microfit project connection request denied by Hydro One but fortunately I had not yet committed to any contractors. (Funny thing though, there are questions in the connection request you could only answer if you had actually selected and committed to a system design). Regardless, I live on a major road and to date there are very few solar projects connected to the grid in my area. Therefore, I am very suspicious that now that green energy is loosing popularity our Government has found a way to backtrack on their commitments to the little guys. I am asking for proof of capacity issues in my area. And if I don’t receive it or if there is insufficient proof of capacity issues, then I hope all of us who are being denied our projects, will seek legal action for breech of promise, etc.
I just had my microFIT application rejected by HydroOne due to capacity "Based on our analysis, we have determined that your project is impacted by system constraints. We regret to inform you that we are unable to provide you with an offer to connect your microFIT project at this time." I will pursue with my MP. I found on the OSEA website a form letter to send to an MP, it refers to the price cut for ground mount systems which is a very valid issue. Does anyone know of a letter writing campaign that deals with HydroOne or other Supplier's reluctance to issue microFIT approvals, ie a Ministerial Directive? We are talking of a 10kw project here and knowing something of technologies I think it is fair to say that a mere 10kW of power generation from my system will not make its way down to the end of my street. What hold does HydroOne have on these approvals... this is frustrating that I will not see the lucrative gains and contribute to the reduction in our greenhouse gas emissions by producing clean, green energy. I do not expect a positive outcome after each successive 30 day reassessment by HydroOne. Any suggestions or insight to help us small producers move forward would be helpful.
Many of those who can't get connected will find it hard to wait till they actually get connected. Answers as to when are non-existent! Since Hydro One will be on the hook for a 20 year contract sooner or later, they may as well start paying off the contract as if the panels are hooked up. Then they can take their time to do it right and nobody will be inconvenienced.
Your opinion piece by David Oxtoby is good! Could you add a line somewhere that the Christian Farmers Federation has started to collect names of those with solar project problems. Their phone # is 519 837 1620.
Henry
We are one of the many who followed the "original" rules , built our system in trust and then being told by the OPA, with regret, that we won't be connected at this time due to system constraints. Don't think for a minute that we didn't check over and over again if we had missed a step. We have looked over all the paper work and re read the conditional contract, and not once did we,or do we see the line not to proceed unless we have an offer to connect. Our conditional offer details all the conditions we had to meet to be connected and as far as we can ackowledge, we have met all the conditions including an ESA inspection that passed with no problem. There seems to be a lot of speculation out there as to what is the problem, would anyone out there actually know what the term "sytem constraints" actually involves? Most of us know that lack of room on the grid is bogus. So what is going on here?
Is legal action the only option now? Thinking about all costs and delays that will bring maybe the OPA and provincial government can show some integrity and honour these contracts as they should have in the first place.
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