Ontario's Solar Feed In Tariff Lesson

 

Back in March of 2006, The Premier of Ontario, Canada announced the implementation of a gross feed in tariff program. Under the plan, the Ontario Power Authority would purchase electricity produced by wind, biomass, small hydroelectric and grid connected solar power systems. The price paid for solar power was  set at AUD 51 cents (current exchange rate) per kilowatt hour produced, guaranteed for 20 years.

The goal of Ontario's feed in tariff program was to add up to 1,000 megawatts of renewable energy to Ontario's electricity supply over a decade; enough to power 250,000 homes.

According to an article on the New York Times, while a window of 10 years was allowed for to reach the target, uptake of renewable energy systems became so popular, the 1,000 megawatt mark was reached within a year and the program temporarily ended. Ontario is expected to re-launch the feed-in tariff next week under new green energy legislation.

Thanks to initiatives such as the province's feed in tariff program,  25 per cent of Ontario’s electricity came from renewable sources in 2008. One of North America’s largest solar farms is currently under construction near Sarnia.

Research and real world experience has continually shown that a feed in tariff program can be spectacularly successful in boosting emissions free electricity generation capacity if 3 basic criteria are met; being:

a) A rate well above the current market rate paid per kilowatt hour to stimulate investment in solar energy systems. The payment recompenses home owners over a period of time for renewable energy  infrastructure that power companies would otherwise need to invest in.

b) A gross feed in tariff rather than net. A net feed in tariff only pays on surplus electricity generated by a system; whereas a gross model pays on each kilowatt hour produced.

c) A generous or non-existent cap on system size.

While many governments around the world continue to struggle with meeting renewable energy and emissions targets and are often influenced by an ailing, yet still extraordinarily powerful coal industry; populations stand by ready to do their bit to help achieve clean power goals. One example of a display of support is a petition recently launched by Australian solar energy company Energy Matters that in less than a month has gathered over 10,000 signatures to encourage the Australian government to implement a nationalised gross solar feed tariff program.

Solar panels - beware of counterfeits

 

The solar energy gold rush is on and there's plenty of companies looking to cash in. Some will succeed on their own merits, but some are jumping on the coat-tails of established companies by using variations on brand names. These counterfeit wares are often sold via avenues such as online auction sites.

Suntech Power Holdings Co., Ltd., the world's largest manufacturer of solar panels, recently gained a preliminary injunction in Germany to prevent a Hong-Kong based company from allegedly distributing products using their "Suntech" solar panel brand.

Aside from trademark issues, consumers purchasing counterfeit solar panels based on brand reputation may be getting far less than they bargained for in the equipment itself on a number of fronts. Some cheap, imported panels from unknown companies also present similar risks.

Major manufacturers have made significant investments in research and development of their products to ensure consumers can be confident in their solar panels. This research and quality control is incorporated in the price. Poorly designed panels may not be properly weatherised or generally constructed, which not only impacts on their performance, but can substantially increase the risk of electrocution or fire.

Imitation panels may not carry a warranty comparable to established brands, or if they do, there's the prospect of the company suddenly disappearing when products start failing, only to re-emerge under another brand name.

Counterfeit, imitation and grey market solar panels, while seeming to be cheaper, can also  end up costing consumers more in terms of solar power rebates and incentives.

In order for consumers to receive Australia's $8,000 Solar Homes and Communities Program rebate or RECs (Renewable Energy Certificates) which will also become the basis of the new Australian Solar Credits program, all equipment must carry specific certifications. The 'CE Mark' from Europe alone is worthless in Australia for solar panels as it is a self-certification.

In the case of solar panels, the certification consumers should look for is IEC 61215, which is the International Electrical Commission's standard. The IEC 61215 regulates the design qualification of solar panels used for long-term outdoor operations. All panels to be used in Australia also need to be registered with the relevant government authorities in order to qualify for rebates and RECs. 

Australian solar power company Energy Matters recently released a consumer's guide to buying solar power systems to help alert people to the issue of counterfeit products and a range of other questionable practices to watch for when considering investing in a home solar energy system.

News for Monday 16 February, 2009

 

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