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Canadian Federal Budget 2017 Earmarks $3 billion for Decarbonized and Smarter Energy Systems

23/3/2017

21st Century Electricity System Driver for Climate Action and Clean Technology for Clean Growth

Ottawa, ON - (March 23, 2017) – The Canadian Federal Government released its first budget yesterday since ratifying the Paris Agreement.

Canadian Solar Industries Association’s President & CEO, John Gorman, released the following statements:

“Today’s budget is another early milestone in Canada’s transition to our cleaner energy future. It advances our progress on international obligations, helps Canada adapt to the impacts of climate change and allows our nation to remain competitive in the rapidly changing global economy. Reducing subsidies to fossil fuels, putting a price on pollution and supporting major green infrastructure projects laid the groundwork. Budget 2017’s strategic investments—ear-marked for the next generation of clean electricity, storage and smart grid projects—places individuals, households, communities and the buildings that they live and work in at the centre of the solution to our energy future”.

“The social, economic and environmental costs of relying on diesel in Canada’s northern and remote communities cannot be overstated. CanSIA applauds the continued leadership and investment demonstrated in today’s federal budget in the transition toward local renewable energy resources and away from imported diesel fuels is welcome. Integrating solar, storage and micro-grids is an area where Canada can be the global leader”.

In addition to signalling that further details on the allocation of the $2 billion Low Carbon Economy Fund will be announced in the near future, the following is a list of specific allocations to programs that will support the transition to a cleaner, smarter and more distributed energy system:

$100 million to support smart grid, storage and clean electricity technology demonstration projects.
$220 million to reduce the reliance of remote communities on diesel fuel and support renewable power.
$182 million to retrofit existing buildings and build new net-zero energy consumption buildings across Canada.
$200 million to support the deployment of emerging renewable energy technologies nearing commercialization.

These investments demonstrate recognition that clean technologies such as solar energy are now commercially ready to play a mainstream role in the 21st Century. The timing for such a transition has never been better given declining technology costs and the pressing opportunity for Canadian industry to improve its position and expertise in this booming global market niche.

About CanSIA
Canadian Solar Industries Association (CanSIA) is a national trade association that represents the solar energy industry throughout Canada. Since 1992, CanSIA has worked to develop a strong, efficient, ethical and professional Canadian solar energy industry with capacity to provide innovative solar energy solutions and to play a major role in the global transition to a sustainable, clean-energy future. Follow CanSIA on Twitter and Facebook.

For more information, please contact:
Erin Seegmiller
1-866-522-6742
eseegmiller@cansia.ca

The Impact of Ontario’s Fair Hydro Plan on Solar Net Metering

3/3/2017

Yesterday the government of Ontario released the details of their Fair Hydro Plan. The plan is intended to result in a 25% reduction on the average residential electricity customer’s bill and, barring any unforeseen delays, should be in place by the summer of 2017 (likely May). This 25% reduction will be coming from different areas:

8% reduction from the removal of the provincial portion of the HST on electricity bills (this is already in place and appears on bills today).
17% reduction from the additional measures announced yesterday. Each of these additional measures will impact solar PV net metering to differing degrees and are described below.

Policy Rationale for the Plan

The policy rationale for the plan is that the electricity system in Ontario was facing a massive infrastructure deficit, inherited from successive governments of all political stripes, and needed to pay to address that deficit. Additionally, there were costs incurred during the coal phase-out process in order to clean the electricity supply and reduce Greenhouse Gas (GHG) emissions from the sector. All of these costs have ended up being front-end loaded with today’s ratepayers subsidizing both past and future ratepayers for infrastructure which needed to be built. Instead of front-end loading the payment of those costs, the government will be amortizing a portion of those costs over 30 years in order to reduce the installments being paid. Similar to refinancing a mortgage this will, however, result in more being paid in the long-run because of the costs of financing the debt. Government estimates put this additional cost at $25 billion over the 30 years.

And now to the components of the plan and potential impacts.

Refinancing the Global Adjustment

The Plan: Beyond the already instituted 8% HST rebate, the Fair Hydro Plan will target an average reduction of 17% to residential electricity bills, in part, by reducing the amount of GA that is paid for by ratepayers by $2.5 billion each year for the first 10 years. Keep in mind that the full 17% reduction will not all come directly from refinancing the GA – some of the 17% reduction will come from other measures that will impact solar net metering to a lesser degree. These will be discussed below.

The full cost of GA would continue to be paid to generators (nuclear, natural gas, waterpower, wind, solar, bioenergy) and to fund conservation programs (which satisfies the government’s contractual obligations to these parties) but will be funded, in part, by debt rather than from ratepayers, at least for now. The annual $2.5 billion difference will be transferred to an account managed by Ontario Power Generation (OPG) where it will accumulate interest and be paid off over a longer period of time (30 years). This change will result in an immediate reduction on electricity bills by reducing the GA component of the cost of electricity. The government has also announced that they will be holding any increases to electricity rates to the rate of inflation over the next 4 years.

The Impact to Solar Net Metering: Refinancing the GA will directly reduce the per kWh charge that electricity customers pay, which will change the price that companies will need to offer a potential net metering customer. For example, if a customer was currently paying 15¢/kWh for grid electricity, a net metering company might need to offer a solar kWh for 13-14¢ in order for the customer to be interested. With the refinancing of the GA, the price per kWh of grid electricity will decrease and the net metering company would need, in turn, reduce the cost of a solar kWh in order to incent uptake. This will increase payback periods by widening the gap between the cost of a kWh from the grid and the required price per kWh that a net metering system would need in order to cover costs and still produce electricity cost savings for the customer.

We do not yet know the exact impacts to the per kWh price in Ontario and so cannot yet quantify the exact impact to net metering system economics. Once greater clarity on the impact to Time of Use (TOU) and Tiered Rates is available, CanSIA will share that information with Members. For the time being, below are some potential impacts in the form of changes to mock bills for standard service residential electricity customers.

Before the Fair Hydro Plan

After the Fair Hydro Plan

Broadening the Rural or Remote Electricity Rate Protection (RRRP)

The Plan: The RRRP provides a rate subsidy to rural or remote residential customers who are faced with higher distribution costs compared to urban areas. The RRRP will be expanded to include about 800,000 R1 and R2 residential customers (up from the current 350,000) across the service territories of Hydro One, Northern Ontario Wires Inc., Lakeland Parry Sound, Chapleau PUC, Sioux Lookout Hydro, InnPower, Atikokan Hydro and Algoma Power. The costs of the RRRP is currently born by ratepayers through a portion of the Regulatory charge on the electricity bill, however, the cost will be moved to the tax base and thus come off the Regulatory charge.

The Impact to Solar Net Metering: This change is expected to have a relatively minor impact on solar net metering as the addition to the regulatory charge on current bills is small and the effect will only impact residential distribution charges. As described previously by CanSIA, the Ontario Energy Board (OEB) is going through the process of fixing residential distribution charges, thus solar net metering cannot affect these charges regardless.

Enhancing the Ontario Electricity Support Program, First Nations On-Reserve Delivery Credit, and Establishing a New Affordability Fund

The Plan: The Fair Hydro Plan will also make a number of changes to one existing program as well as create two new programs, all of which will be funded by the tax base rather than ratepayers. The Ontario Electricity Support Program (OESP) will increase its monthly credits by 50% to cover more low-income Ontarians. The First Nations On-Reserve Delivery Credit will eliminate the delivery charge for all on-reserve First Nations households and remove the monthly service charge for customers of licensed distributors which charge a bundled rate. Finally, a new Affordability Fund will be created which will assist low-income customers in accessing energy conservation programs to reduce their electricity consumption.

The Impact to Solar Net Metering: CanSIA expects the impact to solar net metering from these three measures to be relatively minor given that they generally target either portions of the bill that cannot be impacted by a net metering system, and because they target customer classes that would not likely pursue solar at this time.

Conclusion

The Fair Hydro Plan is being implemented to provide, in total, a 25% reduction on the average residential electricity customer’s bill. These impacts, however, are largely focused on volumetric portions of the bill (commodity/electricity charge, HST, regulatory charge) and are thus going to impact the economics of solar net metering as this is the portion of the bill that can be reduced by a net metering system. Certainly the GA refinancing plan will have the largest impact, however, the cumulative impact of all changes are additive and will increase the overall impact. The impacts will be especially pronounced for residential customers, however, the commercial/industrial sector will not be as heavily impacted due to the relatively low costs per unit of electricity that come from the of GA for these customers. CanSIA will be working to better quantify the impacts to solar net metering in the coming weeks to better understand changes to TOU and Tiered Rates as well as to total changes to the volumetric portion of the electricity bill.

Canadian Solar Industry Ready for Alberta’s New Solar Program

27/2/2017

Residential and Commercial Program to empower over 10,000 new solar roofs and create local jobs

Edmonton, AB - (February 27, 2017) – The Canadian solar industry is primed to participate in the Government of Alberta’s newly launched Residential and Commercial Solar Program – a 36 million dollar program supporting the installation of solar electricity generation on residential, multi-residential and small commercial roofs across the province with the goal of achieving 10,000 new solar roofs. This program will compliment other supportive policy targeting households, businesses, farms, indigenous communities and municipalities to make investments in becoming more energy efficient.

Minister of Environment and Parks and the Minister Responsible for the Climate Change Office, Shannon Phillips, announces program on Feb. 27 in Edmonton, AB

View the Government of Alberta's full press release.

“Alberta, a province best known for its oil and gas industry, is also rapidly becoming western Canada’s leader in renewable energy. The Government of Alberta is positioning the province for the diversification of its energy future by exploring another one of its abundant energy sources – the sun. More Albertan households and small businesses will now be empowered to go solar, strengthening local economies and creating jobs. The government has delivered on their word and the Canadian solar industry is ready to deliver in return.” - John Gorman, President and CEO of Canadian Solar Industries Association (CanSIA

Over the next five years, the Residential and Commercial Solar Program will build on these existing programs. By 2019, the new program is expected to:

support the creation of 900 jobs in Alberta’s solar sector
cut solar installation costs by up to 30 per cent for residences, and up to 25 per cent for businesses and non-profits
reduce greenhouse gas emissions in the province by about a half million tonnes, the equivalent of taking 100,000 passenger vehicles off the road

To ensure Albertans receive timely access, the government is posting a Request for Proposal to identify a third party to deliver the new program. Details will be defined in coming months, including qualifying systems, installation and eligibility requirements. Sign up for CanSIA's E-News to receive updates.

The program is another important step towards solar becoming an integral part of Alberta’s energy supply. Details of how Alberta’s Climate Leadership Plan will create opportunities for the Canadian solar industry will be discussed at the upcoming Solar West Conference taking place May 9-11 in Edmonton. With 400 expected attendees spanning across the industry, Solar West is certain to be an event energy insiders cannot miss.

About CanSIA
Canadian Solar Industries Association (CanSIA) is a national trade association that represents the solar energy industry throughout Canada. Since 1992, CanSIA has worked to develop a strong, efficient, ethical and professional Canadian solar energy industry with capacity to provide innovative solar energy solutions and to play a major role in the global transition to a sustainable, clean-energy future. Learn more at www.cansia.ca. Follow CanSIA on Twitter and Facebook.

About Hannover Fairs
Hannover Fairs USA, Inc. (HFUSA) is the United States subsidiary of Hannover, Germany’s Deutsche Messe – one of the world’s largest and most active event organizers. Deutsche Messe annually produces more than 100 trade fairs and conferences worldwide, including Canada’s premier solar energy event, Solar West. Visit www.solarwestconference.ca for more information.

For more information, please contact:
Erin Seegmiller
1-866-522-6742
eseegmiller@cansia.ca

Call for Nominations: 'A Moment in the Sun'

12/1/2017

Calling all hard working, sun loving, champions of solar!

Here at CanSIA, we're searching for a few good men and women to feature in an upcoming report that will tell the story of solar's positive economic, environmental, and societal benefits.

We're looking for people who work in Canada's solar electricity industry, and who in some way personify the spirit of the solar energy.

Your nominee might be an installer, a scientist, an executive, a developer, or anyone in between. Anyone who is helping diversify and transition Canada's energy system by capturing free, abundant, clean, and endlessly renewable solar electrical energy.

You can nominate yourself, a colleague, peer, or friend, and you can do so anonymously if you like!

Click here to let us know, in a few words, why you feel your nominee deserves a Moment in the Sun!

Nomination Form

Solar Rises as Federal Government Releases Mid-Century Decarbonisation Strategy

18/11/2016

Today, the Federal Government submitted: "Canada's Mid-Century Long-Term Low-Greenhouse Gas Development Strategy" to the United Nations Framework Convention on Climate Change, a document detailing what a long-term low-greenhouse gas emission society will entail. In which Canada outlines an emissions abatement pathway consistent with net emissions falling by 80 per cent in 2050 from 2005 levels. This is consistent with the Paris Agreement's 2°C to 1.5°C temperature goal.

Solar energy is highlighted in this strategy. The chapter titled Decarbonisation and Expansion of Canada's Electricity System presents solar electricity generation increasing significantly to reach levels between 18 TWh (1 per cent of total generation) and 99 TWh (6 per cent) in 2050 representing approximately 10 to 60 GW of cumulative installed capacity in operation. This implies a Canadian solar market of 100's to 1,000's of MW per year for the next three decades.

The importance of this document is that it sends a clear signal that while 2050 is decades away, changes to all decisions with long-term energy implications will need to start today and that solar energy will soon become a mainstream part of Canada's energy future.

CanSIA will continue to review and comment on the report in consultation with Members. We expect further energy and environmental policy announcements in preparation and conclusion of the First Minister's Meeting in early December. Attend Solar Canada 2016 to gain insights and perspectives as to what these developments will mean for the solar industry in the coming years and decades.

Government of Canada to be Powered by 100% Renewable Electricity by 2025

2/11/2016

The Federal Government has announced that by 2025, 100% of electricity used in their buildings and operations will be from renewable energy sources. This target is in support of a target to reduce the Federal Government's greenhouse gas emissions by 40% as early as 2025. The initiative supports their commitment to a cleaner, more innovative economy that reduces emissions and protects the environment while creating well-paying jobs for the middle class and ensures a prosperous and sustainable economy for the next generation.

Speaking from Calgary at a renewable energy industry conference, the Honourable Catherine McKenna, Federal Minister of Environment and Climate Change highlighted that this initiative will create significant new demand for renewable electricity across Canada including a significant purchase of renewable electricity for Department of National Defence installations in Alberta (Calgary, Cold Lake, Edmonton, Wainwright, and Suffield).

John Gorman, CanSIA President & CEO, released the following statement in support of today's announcement:

"The Federal Government's commitment to purchasing 100% renewable electricity from sources, such as solar energy, as early as 2025 makes a significant contribution to Canada's innovation and environmental protection agenda in two ways.
Firstly, they have the purchasing power to make a difference. Not only will their actions directly displace significant levels of greenhouse gas emissions, it will also give rise to new businesses and infrastructure.
Secondly, being a part of the global response to climate change will bring changes to the decisions that are made by all consumers for goods, products and services. By leading by example, the Government of Canada is demonstrating that every one of us has a role to play in making the right decision for future generations."

Read the Government of Canada's full news release here.

News Release: All Alberta's New Schools are Going Solar

26/10/2016

CanSIA states generating solar electricity on roofs of schools will inspire children and invigorate their entire learning experience.

As part of its Climate Leadership Plan, the Alberta Government has committed to including solar electricity generation in each of the province's 36 new schools in the planning or design phase.

This initiative is in response to a recommendation made by students to the Alberta government as a way to demonstrate leadership on tackling climate change.

Read the Government of Alberta's full news release here.

"There is no location better than on the roofs of our schools in the centre of our communities for local solar electricity generation. The energy does not travel far before it meets an energy need making our electricity system more efficient. More importantly, showcasing this modern approach to managing our energy needs so close to where our children spend much of their day inspires them, develops their interest in science and in the environment and builds the school-pride that invigorates their entire learning experience." - John Gorman, CanSIA President & CEO

News Release: Government of Alberta Aims To Become 50% Solar-Powered

6/10/2016

CanSIA states Alberta is leading Canadian provincial and territorial governments by example

EDMONTON, AB - (October 6, 2016) -- The Canadian Solar Industries Association (CanSIA) states that the Government of Alberta is leading by example as the first provincial or territorial government in Canada to explore the feasibility of meeting 50% of their annual electricity needs from solar energy. Minister Shannon Phillips, Alberta’s Minister of Environment & Parks (and Minister responsible for the Alberta Climate Change Office) announced their intent today at the Solar West 2016 conference in Edmonton, hosted by CanSIA for the solar energy industry. The process, if successful in identifying a supplier or suppliers that can construct and operate a solar farms that meet the province’s economic criteria, could give rise to 100 MW of new installed generation capacity in the province - enough to power 18,750 Alberta homes for a year.

CanSIA released the following statements:

John A. Gorman and Minister Phillips, Alberta Energy

“There is no doubt that solar electricity will become an important component of Alberta’s decarbonized and diversified electricity supply mix as the cost of our technology continues to significantly decline. The solar farm that would meet half of the Government of Alberta’s annual electricity needs would support the delivery of many firsts. Canada’s first 50% solar-powered Government. Western Canada’s first large-scale solar farm. Alberta’s first utility-scale solar jobs. The success of this initiative will secure the government and public confidence in a larger future role for solar energy in Alberta” – John Gorman, President & CEO, CanSIA

“Not many people know that the Government of Alberta has been 100% renewable for a decade. This initiative gave the wind energy industry the early leg-up they required to become the cost-competitive clean option that they are for the province today. We expect that this new solar energy initiative will not only help our industry to overcome some preliminary hurdles in Alberta, but to also deliver the lowest cost solar electricity in Canada’s history” – Patrick Bateman, Director of Policy & Market Development, CanSIA

Read the Government of Alberta's full news release here.

For more information or for interview opportunities, please contact:
Erin Seegmiller, Administrative and Communications Assistant
Canadian Solar Industries Association
613-736-9077 ext. 221
eseegmiller@cansia.ca

Federal government move to price carbon emissions will accelerate transition to renewable electricity

4/10/2016

October 3, 2016—The Canadian Council on Renewable Electricity made the following statement in response to the federal government’s announcement that it will ratify the Paris Agreement and establish a national price on carbon emissions:

QUOTES

“Now, more than ever, Canadians are looking for ways to decarbonize our economy, and renewable electricity will play a crucial role in this shift. A national price on carbon pollution can help accelerate this transition.” — John Gorman, Canadian Solar Industries Association

“A carbon price will accelerate the integration of clean, renewable generation sources into Canada’s electricity grid. And the more we electrify our economy—from transportation, to industry to buildings, —with non-emitting renewable resources, the faster and deeper we can cut greenhouse gas pollution and ensure Canada delivers on its commitments.” — Robert Hornung, Canadian Wind Energy Association

“Pricing carbon emissions on its own won’t enable Canada to reduce emissions in line with our targets—other complementary measures will be required. One such measure is for the federal and provincial governments to adopt and facilitate achievement of national targets for electricity generation that move us close to 100 per cent zero-carbon electricity by 2050.” — Jacob Irving, Canadian Hydropower Association

“This is a positive step that will drive innovation, and as markets increasingly demand renewable energy solutions there is an opportunity increase the export of Canadian renewable electricity, technologies, services and products to markets around the world.” — Elisa Obermann, Marine Renewables Canada

Renewable energy sources such as sun, wind, and water currently meet 65 percent of Canada’s electricity needs.
Canada has the cleanest, most renewable electricity generation system in the G7, and the fourth largest renewable energy capacity in the world.
A recent report for the United Nations identified boosting renewable electricity production—in combination with electrifying buildings, industry, and transportation—as a key step on a path Canada can take to “decarbonize” its economy. (Source: Pathways to Deep Decarbonization - Canada Chapter, Sustainable Development Solutions Network & Institute for Sustainable Development and International Relations, 2014.)
A recent study by more than 60 of Canada’s leading academics identified renewable electricity as a key climate change solution. They note that Canada could completely decarbonize its electricity systems by 2035, which would make it possible for our country to adopt long-term pollution reduction targets consistent with our international obligations to act on climate disruption. (Source: Acting on Climate Change - Solutions from Canadian Scholars, Sustainable Canada Dialogues, 2015.)

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