Industry Update: The Solar Experience

Examining Ontario's solar industry.

October 25, 2011

Using findings that show private investment in Ontario is spurring a healthy solar industry, the Canadian Solar Industries Association (CanSIA) is supporting the reduction of feed-in tariff (FIT) rates this fall. 

The Economic Impacts of the Solar PV Sector in Ontario, a study by ClearSky Advisors Inc., shows that $12.9 billion in private investment is expected in Ontario by 2018.  Investments in the next seven years will support more than 74,000 person-years of employment, or an average of 25 jobs in Ontario per installed megawatt. The study also found that $2 billion will be invested by the end of 2011, with associated employment expected to be 8,200 in 2011 and climbing to 11,400 in 2012.

The cost to electricity customers is expected to be an additional 3 percent by 2018, or 70 cents more on a typical monthly electricity bill each year through 2018. 

“CanSIA and its members want to play an active partnership role with the government of Ontario in assisting in the improvement of the current program, as well as the design of future programs. Our goal as an industry partner is to help ensure the operation of effective, efficient, and affordable programs, resulting in lower costs to the consumer,” said CanSIA President Elizabeth McDonald.

In considering the economic benefits quantified in the report, CanSIA has been careful in suggesting revisions to the current FIT program, which is expected to be reviewed this fall. Using input from its members, CanSIA assembled information on cost trends in the Ontario marketplace. Based on these cost trends and the need to improve the affordability of investments, CanSIA is suggesting a reduction in pricing should be made, and the association is also proposing practical recommendations, including consideration of a solar thermal FIT regime, to ensure the current program can operate more effectively and efficiently in the future.

“Our support for a rate decrease recognizes how far solar has come. It acknowledges the need to see a reasonable rate of return for investors and the importance of creating a stable, diversified energy grid. The Ontario industry knows what people around the world are discovering: Solar energy becomes more affordable as demand increases, technology matures, and production expands,” said Jon Kieran, CanSIA board chair and director - solar of EDF-EN.  “We believe that with new rates, Ontario is well on the way toward price parity with other forms of energy generation.”

Other key findings in the report conclude:

• In 2010 Ontario ranked second for solar PV installations among U.S. states and Canadian provinces and territories (167 MW DC).
• The province is expected to remain the second-largest solar PV market in North America in 2011.
• By the end of 2011 there will be more than two dozen solar PV module and inverter manufacturers in the province.

www.cansia.ca