Duane Hicks
While still faced with a decision on whether to go ahead with a proposed solar panel project here, town council got its questions about the venture answered from Corey Bolton of Solar Logix Inc. here Monday night.
First and foremost, Bolton assured the mayor and council that if they sign a contract with the Ontario Power Authority (OPA), which indicates they will be paid 80 cents per kilowatt hour produced, it’s legally-binding and that price will be fixed for the 20-year life of the deal even if the provincial government changes.
He noted PC leader Tim Hudak recently stated in a newspaper article that if his party came to power, they would shut the feed-in tariff (FIT) program down but the contracts would remain legally-binding.
When asked about the disparity between the cost hydro customers pay for power and how much it costs to generate it, Bolton explained hydro is highly-subsidized.
For example, during peak hours of operation, some parts of Ontario are buying power from Quebec, New Brunswick, and New York and paying more than $1.80/kWh for it.
Even though most businesses pay 6.5-12 cents per kWh, that energy is costing 30-60 cents per kWh to generate—and much more during peak hours.
The rate of 80.2 cents per kWh actually is reflective of the true cost of power during peak times, Bolton noted.
“The sun shines, obviously, during the day when most people are using the majority of energy,” he explained.
“That’s what they’re trying to cut back on—those peak hours of consumption that causes us to purchase our power for over $1.80 per kilowatt.”
While Bolton admitted the 80.2 cent rate sounds high, it is an introductory rate to get solar projects started now.
Solar Logix has estimated that within five years, new contracts probably will be for 40-50 cents per kWh while hydro rates will average eight or nine cents per kWh.
Coun. Ken Perry noted the town received a letter from the Association of Municipalities of Ontario indicating the introductory rate may drop in October.
As far as concerns about elemental damage, Bolton said there’s no documentation of hail breaking panels.
If the hailstones are the size of baseballs, damage is likely. But this damage would be covered by insurance.
As for snow, Bolton said if there is a build-up of a foot or more of snow, the white stuff should be removed.
As well, the solar panels should be cleaned three-four times a year due to pollen, dirt, and other debris that may build up.
There also should be no concerns about hydro transmission and distribution lines given the majority of electricity generated by the solar panels on town buildings actually will be consumed by the building they’re sitting atop.
As previously reported, council is contemplating the installation of rooftop-mounted solar panels on the Public Works garage, Memorial Sports Centre, Children’s Complex, water treatment plant, and Civic Centre.
It would cost the town an initial $453,500 to do the five projects, after which time the solar panels are projected to generate $60,756 per year in revenue—or $761,620 over the life of a 20-year contract.
This revenue would be realized through a microFIT program under the Ontario Green Energy Act, which guarantees specific rates for energy generation from renewable sources paid by the Ontario Power Authority (OPA).
Under the program, which is for generators of less than 10 kilowatts, the town would be guaranteed 80.2 cents per kilowatt hour produced through a 20-year contract with the OPA.
With the life expectancy of the solar panels and related equipment estimated at 40 years, and the energy production of the panels estimated to deteriorate by about 20 percent by the end of the 20-year contract, another agreement could be negotiated with the OPA to continue to generate revenue.
The revenues made from selling energy collected by the solar panels could be used for energy-saving retrofits, infrastructure improvements, facility upgrades, and more.
Solar Logix Inc. was the company which conducted a study on 10 town buildings. It looked at suitable roof areas for installation, an analysis of shade-producing obstructions in the area of installations, a computer model of installations to determine projected generation capacity, and a preliminary cost breakdown.
Costs and revenues were analyzed, and possible locations ranked according to annual production, initial cost, and annual revenue.
Council will discuss the solar panel project further at its next budget meeting (April 4).
If council decides to go ahead with it, the request for proposal (RFP) process will be started.
