HomeMy WebLinkAboutCAO-12-035 - Rooftop Solar Applications Under the provincial FeKITC~HENEI~
Staff Repari~
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REPORT TO: Committee of the Whole
DATE OF MEETING: August 27, 2012
SUBMITTED BY: Rod Regier, Executive Director, Economic Development
PREPARED BY: Carrie Musselman, Senior Environmental Planner
Valerie Bradford, Business Development Officer
WARD(S) INVOLVED: All
DATE OF REPORT: August 21, 2012
REPORT NO.: CAO-12-035
SUBJECT: Rooftop Solar Applications under the Provincial Feed In
Tariff (FIT) Program
RECOMMENDATION:
WHEREAS the Province's FIT Program encourages the construction and operation of rooftop
solar generation projects (the "Projects");
AND WHEREAS one or more Projects may be constructed and operated in the City of Kitchener
AND WHEREAS, pursuant to the rules governing the FIT Program (the "FIT Rules"),
Applications whose Projects receive the formal support of Local Municipalities will be awarded
Priority Points, which may result in these Applicants being offered a FIT Contract prior to other
persons applying for FIT Contracts;
NOW THEREFORE BE IT RESOLVED THAT:
Council of The Corporation of the City of Kitchener supports without reservation the construction
and operation of the Projects anywhere in the City of Kitchener.
This resolution's sole purpose is to enable the participants in the FIT Program to receive priority
points under the FIT Program and may not be used for the purpose of any other form of
municipal approval in relation to the Application or Projects or any other purpose.
This resolution shall expire twelve (12) months after its adoption by Council.
BACKGROUND:
The City has received a number of inquiries regarding rooftop solar generation projects
including being approached by representatives from JCM Capital (2 projects/properties), Solar
Power Network (7 projects/properties) and Adelaide Solar Energy Inc. (3 projects/properties)
seeking to obtain Council support for their rooftop solar generation projects in order to receive
priority points under the FIT 2.0 program.
The FIT Rules, Version 2.0 have just been finalized and it is anticipated that in addition to the
requests the City has already received, the City will receive additional requests for Council
resolutions.
REPORT:
In 2009, the Ontario Power Authority (OPA) created two Feed-in Tariff (FIT) programs under the
Green Energy Act that encourages the development of renewable energy projects across
Ontario. The FIT program applies to energy projects that can generate more than 10 kilowatts
(kW) of electricity. The microFlT program applies to energy projects that generate 10 kW or
less, focused on homeowners and small businesses. Both programs deliver significant benefits
to project developers -including communities and Aboriginal groups - as well as equipment
suppliers and installers, consumers and the overall provincial economy.
The purpose of the FIT programs is to encourage renewable power generation through a
guaranteed price structure for renewable electricity production. The prices are designed to cover
project costs and provide a reasonable rate of return on the investment over the term of the
contract. It includes standardized program rules, prices and contracts for those interested in
developing a qualifying renewable energy project.
FIT PROGRAM REVIEW
In 2011, the Ontario Ministry of Energy undertook a review of the FIT program. On March 22,
2012, the Ministry of Energy announced the results of the review. A copy of the report can be
found at www.energy.gov.on.ca/flocs/en/FIT-Review-Report.pdf. The announcement noted that
the province will act quickly to implement all the recommendations, which include:
• Creating more jobs sooner by streamlining the regulatory approvals process for projects
while maintaining the highest environmental protection standards.
• Reducing prices -for solar projects by more than 20 per cent and wind projects by
approximately 15 per cent.
• Encouraging greater community and Aboriginal participation through a new priority point
system, which will also prioritize projects with municipal support.
• Reserving 10 per cent of remaining capacity for projects with significant participation
from local or Aboriginal communities.
• Developing a Clean Energy Economic Development Strategy to leverage Ontario's
significant expertise and strengths to become a global leader in the sector.
The Report provides, in a number of ways for greater municipal and community involvement in
renewable energy projects. The intent to encourage the development of FIT projects by and
together with local municipalities as well as community and aboriginal groups is apparent in a
number of parts of the Report.
Specific changes that reflect municipal considerations include:
• prioritizing projects with municipal support by awarding points during the application
review process;
• support for municipalities to better integrate renewable energy projects in communities;
• requirements for early contract launch meetings with municipalities and other key
stakeholders for large FIT projects;
• changes to the Municipal Consultation Form in the Renewable Energy Approval (REA)
process to better address municipal concerns;
• strengthening the protection of prime agricultural lands by prohibiting solar ground-
mount projects (over 10 kV~ on lands that contain class 1, 2 and 3 soils without
exception and land with organic and mixed soils;
• prohibiting solar ground-mount projects (of any size) in residential areas and lands
bordering residential areas; and
• restricting solar ground-mount projects in commercial or industrial areas to installations
where the production of renewable energy is a secondary use.
The FIT 2.0 Program has developed a point system whereby when positive municipal support is
given it adds more weight to these projects. This provides the opportunity for municipalities to let
the OPA know whether they support these projects.
ROOFTOP SOLAR INSTALLATIONS IN KITCHENER
Renewable green energy projects are exempt from Ontario's Planning Act legislation. The City
of Kitchener's Official Plan and Zoning By-laws do not apply to renewable energy undertakings,
although Building Permits are required when proposed facilities are to be attached to existing
buildings.
The City requires a building permit be obtained for any solar collector with an aggregate face
area of 5 sq. m. or greater that is mounted to a building or structure. Since 2009 the City has
issued approximately 100 building permits for rooftop solar generation projects with an
aggregate face area of 5 sq. m. or greater.
Proposals to install solar technology on Part IV and Part V (Group A, B, and C) cultural heritage
resources require the submission and approval of a Heritage Permit Application. This spring
Heritage Planning staff developed guidelines which Council approved (CSD-12-071 -Guidelines
for the Installation of Solar Technology on Cultural Heritage Resources) in order to ensure a
consistent, fair and transparent process for the consideration of such Heritage Permit
Applications.
COUNCIL SUPPORT
Council support of projects that meet the requirements of the FIT 2.0 program will give
proponents two (2) additional points toward their application. The more points a project receives
the higher the likelihood of it securing a contract.
A blanket resolution supporting rooftop solar generation projects that meet the requirements of
the FIT 2.0 program provides the opportunity for the City to offer support for renewable energy
production.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
These are private sector green energy projects.
FINANCIAL IMPLICATIONS:
Not Applicable.
COMMUNITY ENGAGEMENT:
Communication is not required as the FIT program is administered by the Ontario Power
Authority (OPA).
CONCLUSION:
The FIT 2.0 Program has developed a point system whereby when positive municipal support is
given it adds more weight to a project. This provides the opportunity for municipalities to let the
OPA know whether they support these projects. The more points a project receives the higher
the likelihood of it securing a contract.
ACKNOWLEDGED BY: Rod Regier