Ontario Takes the Lead on Alternative Energy

A raft of subsidies and other incentives is making Ontario a hot spot for solar panel manufacturers and others in alternative energy. The province’s government recently announced a $610 million fund to develop a green technology industry and attract carmakers and solar panel manufacturers. Municipalities will also be able to dip into a separate $206 million fund for retrofitting buildings.

Additionally, the province has unfurled programs that eliminate sales tax on Energy Star-rated lightbulbs and appliances for a year, offer homeowners up to about $4,689 to install energy-efficient appliances, and set a goal to see 100,000 homes go solar. A pilot program will also extend zero-interest loans to homeowners who install renewable energy systems.

Overall, Ontario wants to reduce greenhouse gas levels to 6 percent below 1990 levels by 2014, 15 percent below those levels by 2020, and 80 percent below 1990 levels by 2050.

One of the key elements in the incentive programs is a solar “feed-in” tariff that pays people and organisations with solar panels cash for any electricity they feed into the grid at a rate of 42 cents per kilowatt hour. The feed-in tariff program started in November 2006 for qualified producers of up to 10 megawatts of power and last week’s announcement expanded this to include larger-scale producers.

The response so far has been positive. After the tariff was announced a North American company has said it will build solar power plants that will produce 60 megawatts of power, according to a representative from the Ontario Power Authority. And Germany-based Conergy, which specializes in solar panel installation, acquired a company in Canada in February and officially opened a subsidiary in Toronto this week.

“These programs build on our government’s efforts to make Ontario the center of the green economy in North America,” said Energy Minister Dwight Duncan.

Phil Jessup, Executive Director of Toronto Atmospheric Fund, commented: “Toronto pioneered home energy retrofit incentives in Canada, so we are delighted that Premier McGuinty has committed funds to boost homeowner action on climate change. His new program will benefit homeowners in many ways. It will cut energy costs, improve home resale value, and reduce smog. Other provinces should follow his leadership.”

Media Contact:

Mr. Anthony Long
Media Coordinator
Solar Power Canada 2008
Tel: +00 1 905 471 3808

Email: media@solarcanadaexpo.com