Standard Offer
Contract
In late March of 2006,
Ontario announced a new Standard Offer Contract
program. The first of it's kind in North
America. Details of the program are still being
drafted and are expected to be posted at some point in
June. The program is expected to be introduced
in the fall of 2006.
For people who participate,
the program will provide payment per kilowatt hour for
energy produced through renewable energy
projects. A rate of 11cents / kWh will be paid
for producers of wind, biomass and small hydro
energy. If the project demonstrates control the
output during peak hours, it will receive an extra
3.52 cents / kWh during that time.
Solar projects will
receive 42 cents / kWh for energy produced.
On April 12th, 2006 the
Ontario Energy Board issued a press
release concerning
it's new rates going into effect May 1st, 2006.
Anyone who wishes to
participate in this program may do so. There is
no cap on the amount of energy projects that can be
completed. However projects are capped to not
produce more then 10 megawatts of energy
each.
How much can Homeowner's
expect?
Using a 1000 watt solar power
system as a base model reference point. In
Ontario a homeowner can expect to generate
approximately 1000 kilowatt hours per year. At
42 cents per kWh homeowners can expect to receive $420
per year.
The Standard Offer Program
contract price will incorporate an escalation on 20%
of the Base Price at the annual Ontario Consumer Price
Index. Escalation will only start after the first year
of the project being in service. This percentage
reflects the proportion of the costs that are expected
to be variable costs and subject to future
inflationary pressures for typical renewable energy
projects. The on-peak performance incentive is not
subject to escalation. The price payable to solar
projects is not subject to escalation.
The contracts will cover
about 1/2 the initial cost of the system. An the
Canadian Solar Industries Association (CanSIA) informs
Photovoltaic (PV) systems will cost between $10 - $15
per watt installed.
Click
here for an
informative article issued by CanSIA
Useful and Informative
links:
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