Remember a while back when I was describing Feed-in Tariffs? Well, OK, so you weren’t paying attention. No brownie points for you.
Anyway, FiTs are handy government programs that allow small electrical generating operations (such as homeowners with a will and a way) to build an electrical generating operation, tie in to the electrical grid and sell electricity to the power company. There are some programs, such as the one in Florida that I mentioned previously, paying enough per kilowatt hour to make it a profitable investment.
Well good golly miss molly, the Canadian government has gone bonkers!
On September 24, 2009, the Government of Ontario officially launched Canada’s first feed-in tariff (pays up to $.802 per kWh produced), a new renewable energy program established under the landmark Green Energy Act. The feed-in tariff is a cornerstone of the province’s plan, Government’s 10 steps to green energy, to make Ontario a North American leader in the development of green energy and jobs.
The 80.2 cents per kWh most assuredly makes them the craziest most enthusiastic promoter of renewable energy generation!
FIT Program
The Feed-in Tariff (FIT) Program is designed to accelerate the growth of renewable sources of energy, including bio-energy, solar, water, and wind. In the process thousands of new jobs will be created right here in Ontario due to required Ontario content regulations. The program will attract a diverse range of renewable energy producers including homeowners, community-based groups and larger scale commercial generators by:
- Guaranteeing rates for energy generated from renewable sources. Through the 20 year microFIT offering, Solar PV is the highest paying at $0.802 per kWh generated.
This Canadian program requires that most of the money spent on the solar PV generating system goes to Canadian manufacturers and Canadian contractors. This makes sense because guaranteeing that high rate paid to purchase electricity and then selling it at a loss means taxes will be paying the difference.
So how the hell can the power company agree to pay out 5 times as much as they sell it for?? (I’m estimating here, might be more or less)
Do you think any people in Canada are stepping forward and voluntarily paying 90 cents per kWh to cover the higher costs of generating this GREEN electricity? I doubt it. The only way this discrepancy is going to be paid for is through taxes.
From the previous posting about the Florida town and their FiT program, we learned that one entrepreneur was installing a solar PV system, borrowing money to do it, and he estimated that he would make a $14,000.00 dollar profit per year from the investment for the 20 years they guaranteed to buy electric from him!
That’s a good deal! The Florida program’s payments for the electric are about what the power company was selling it for. No huge dollar loss per kWh to put the program into effect, but still spur renewable energy generation development.
All right, so if the guy in Florida can make $14,000.00 on his installation, then a Canadian with the same resources could make $50,000.00 a year?? (once again I’m estimating, it could be more)
That’s right, borrow money, buy local, install a solar cell PV (photovoltaic) electric generating system and retire!!! (I’m exagerating slightly to make a point)
I’m all for promoting renewable and non polluting energy sources, but this seems over the edge! Almost like it’s a give away for people who “qualify”!
Dadgummit, we need programs that are sustainable and don’t look like giveaways! If this program turns out to be political shenanigans then it puts all other legitimate programs under suspicion!
