Duane Hicks
Council gave the go-head at Monday’s budget meeting to take part in a solar panel project to generate electricity to sell back to the grid and generate income for the town.
The town put out a request for proposals today to get bids on the solar panel project.
Later this year, the town plans to install roof-mounted solar generation equipment at the Public Works building, water treatment plant, Memorial Sports Centre, and Children’s Complex.
The project is estimated to cost $375,000 initially, but is projected to generate $11,632 in annual income as the town pays off a 10-year loan used to buy the panels.
Once the 10-year financing term is over, the annual revenue is expected to jump to $49,000.
This revenue would be realized through the feed-in tariff (FIT) 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 microFIT program, which is for generators of less than 10 kilowatts, the town would be guaranteed 80 cents per kilowatt hour produced through a 20-year contract with the OPA.
Each installation is estimated to have an annual operating cost of $600, which includes maintenance (cleaning, snow removal, etc.) and insurance.
The majority of council agreed to move ahead with the solar panel project after initially expressing reservations about it.
“I am still a little skeptical about the 80 cents per kilowatt hour, but if council wants to go ahead with this, it looks to be pretty sweet,” said Coun. Rick Wiedenhoeft.
“I hope it’s not too sweet.”
“I am in favour of going ahead,” said Coun. Andrew Hallikas. “I was skeptical, but I had a lot my questions answered at the last meeting [March 28].
“So I think we should go ahead with this, and go through the process to bid on it, as well,” he added.
The one exception was Coun. John Albanese, who remained puzzled over how the OPA can pay 80 cents per kilowatt hour and then charge five cents for it.
He added that over the years, council has been offered several other projects that sounded too good to be true and were—like a theme park.
“I cannot support something that is so good that you can’t refuse,” Coun. Albanese stressed.
“There must be a catch.”
While the town initially looked at putting up five solar panels this year, the Civic Centre was dropped as the fifth location due to uncertainty as to how its proximity to the mill could affect the panels.
For example, ash, steam, and other environmental factors could prove problematic.
However, if the initial four solar panel installations work out well, it’s possible the town may put up more at other municipal buildings down the road.
