Friday, 17 February 2017

Solar panels are great and wonderful, but MicroFIT program is not good

The math writes the story as Ontario sells its hydro for less than it costs to produce

If you buy in February you will receive a free squirrel guard 

By Mark Schadenberg
I received my everyone-wins you-can’t-lose lottery ticket in the mail today.
I was hoping the provincial government was going to suspend all lopsided hydro deals that were in existence. Stop them NOW!
It’s interesting how the federal government can give all potential home buyers about six weeks notice that the CMHC charts are changing for high-ratio mortgages, but citizens of Ontario continue to see solar projects getting doled out like candy on the eve of Oct. 31.
The flyer in my mail was from SunFlow Solar and states this is the last year as a home owner that I can advantage of the MicroFIT contract.
When I was in high school some 35 years ago I recall teachers talking about a future with solar power – heat and electricity. All beliefs at that point were as soon as the technology became affordable for consumers, everyone would have solar panels to hopefully live off the electricity grid, and possibly supply some extra hydro to the grid and receive a small modest stipend for your efforts.
Move forward three decades or more, and we have solar farms, municipal and institutional buildings with solar panels, and naturally countless houses with the ability to create electricity thanks to that ball of fire in the sky.


As someone who believes to be an environmentalist I think that’s great – terrific and awesome. However, the MicroFIT program has increased hydro rates for the consumer exponentially as the province creates far more hydro than we need and then we sell it to New York and Michigan (Quebec, Manitoba and elsewhere too) for less than what it costs to produce. My math is right and the province’s math is wrong and the loser then becomes ‘all’ consumers in Ontario, and most certainly the folks who have a house that does not face the sun in the right direction.
Since our manufacturing sector is struggling with the skyrocketing hydro rates, why are we giving a double advantage to the industries of Michigan and New York as they can build cars by using the cheap hydro we’re selling them for less than 20 cents on the dollar.
Can this MicroFIT system not be stopped today?
The flyer describes the SunFlow Solar company as having a low-risk investment opportunity and that if you sign on sometime in 2017 you will have a signed contract for 20 years. As a Realtor I’m sure that the remaining time on any contract would stay with the house if you were to move, and that carrot-on-a-stick for a future buyer (Is green for cash and orange for sunshine) should increase the value of your home.
This solar panel is behind the Woodstock District Community Complex,
so I certainly understand that cities and many institutional buildings
reap benefits from creating some solar power for their own use. 

I love solar power, but the current system is wrong.
It was estimated that the province lost well over $1 billion in 2016 as it was selling excess hydro for more than it cost to create, and it’s not a slim margin of nickels and dimes per kilowatt hour. Read the links to Toronto Star and Toronto Sun (somewhat ironic name) stories below.
By the way, we’re talking about all electricity in a bulging grid – solar, wind power, nuclear, hydro-electric dams. . .
In 2013 alone, through this hydro export deficit, all Ontario tax payers were required to pay $220 each.
I’m guessing Ontario should triple its rates for selling electricity as an export, and at the same time chop chop chop on what it is paying for hydro creation, but that’s where the tree fall on the highway as the province has 20-year contracts with its suppliers and there is no paper shredder for those contracts.
I love electric cars and they too were always discussed as a possibility when I was a high school student in the early 1980’s.


I ask . . .
Can this MicroFIT system not be stopped today?
The cardboard flyer also describes three more points worth noting. If you book your installation project in February, you will receive free squirrel guards. You could reduce your own hydro bill up to 75 per cent. Also, the leaflet notes about 50,000 Ontario home owners are already earning an income from solar panels.
I don’t want to receive negative comments from posting my prose on this program as I think solar power is terrific (I can be quite repetitive to present my thoughts), and the possibility of some incentives are terrific for home owners, but does the overall mathematics make sense? Nope!  
The MicroFIT website presents a lot more material on the subject, including videos.
The concept of windmills or wind power can be discussed on another day.



Proposed Solar Farm for a brownfield lot on Tecumseh Street, 
which is a project presented to Woodstock City Council last autumn

LINKS:

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All items on this blog site are written by:
Mark Schadenberg, Sales Representative
Senior Real Estate Specialist (SRES designation)

Royal LePage Triland Realty
Independently Owned & Operated, Brokerage
757 Dundas St, Woodstock
(519) 537-1553, cell or text
Email: mschadenberg@rogers.com
Twitter: markroyallepage
Facebook: Mark Schadenberg, Royal LePage Triland


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