It’s been a WHILE since posting and for that I apologize. There’s been a lot of cool (and time-consuming) stuff going on here. Like this, and this. We’re also in the process of setting up our largest internal test site to date, in Southern California. Info to be posted once it’s available.
What I wanted to talk about: today’s the last day that the OPA is accepting feedback on its Feed-in Tariff Program, and even though it’s late in the game, I thought I’d share one of our recommendations.
It’s definitely not the most pressing program change that’s needed. Sitting in on CanSIA’s Small, Large, and Manufacturer Working Groups, I can appreciate that it probably doesn’t even fit on the top 30 of the pressing issues that the Program Review is set up to address. Even for us, a Domestic Content grid for CPV is something we want to see posted before this.
But, if you’re thinking long term, and for policies that could work beyond the Ontario border, here’s a modest suggestion:
Disclaimer: all credit for this idea comes from Glen Schrader, of Bright Ray Solar, our distributor in Ontario. Glen’s a smart guy, and he’s based in Guelph – being removed from the everyday-running-around that happens at 30 Ordnance probably also helps to see the big picture.
Recommendation: Allocate a portion of FIT contracts for new, innovative renewable technologies.
- Along with timely decisions on Domestic Content rules, allocating a portion of FIT contracts for new technologies lowers the barriers to entry that exist for them. Local markets are easiest to develop and new technology companies can use them to establish credibility.
- There is considerable value to new technology companies locating in the province, including IP, high-tech jobs, and the potential for export. New technologies should in principle also offer increased efficiencies, lower costs, higher peak-use generation, or added capabilities such as energy storage.
- These new technologies don’t necessarily have to be invented here, but they should be primarily developed here – and this itself could attract companies to start up here (like us, who chose to locate here for a number of different reasons).
- A carve-out for new technologies ensures that grid capacity will exist for these technologies, which take more time to reach high market penetration.
- Other incentives could also be considered to encourage project developers and/ or customers to deploy new technologies. The Province may be best suited to determine the correct policy response, but these could include rate adders (for generation whose key feature is not lower costs, i.e. energy storage, peak-use generation), or accelerated approvals.
Ontario will find it tough (not saying impossible) to compete with China on the cost of manufacturing traditional silicon solar panels. Policymakers already realize the need to play to the province’s strength for innovation – be it in efficiencies, costs, energy storage or time of day generation. In the way it was set up, the FIT program essentially guaranteed rates for generation projects using technology developed in 2009 – what we need is rates, and other policies, for 2015 technology.
As always, your thoughts welcome.