HomeMy WebLinkAboutCAO-13-035 - Rooftop Solar Applications - Feed-in-Tariff ProgramK TC'.HEI ? .R
Staff Report
CAS's Office
REPORT TO: Committee of the Whole
DATE OF MEETING: October 28, 2013
wwew.kirchenexca
SUBMITTED BY: Rod Regier, Executive Director, Economic Development
519- 741 -2200 ext 7506
PREPARED BY: Thom Ryan, Sr. Business Development Officer, Economic
Development 519- 741 -2200 ext 7826
WARD(S) INVOLVED: All
DATE OF REPORT: October 18, 2013
REPORT NO.: CAO -13 -035
SUBJECT: Rooftop Solar Applications under the Ontario Power
Authority Feed In Tariff (FIT) Program — FIT 3 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 organizations applying for FIT Contracts;
THEREFORE BE IT RESOLVED that the 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;
BE IT FURTHER RESOLVED that 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; and,
BE IT FINALLY RESOLVED that this resolution shall expire twelve (12) months after its
adoption by Council.
EXECUTIVE SUMMARY:
To date, the City has received 30 applications regarding solar rooftop generation projects
seeking to obtain Council support in order to receive Priority Points under the province's FIT
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Program administered by the Ontario Power Authority (OPA). The FIT 3 Program Rules have
recently been released, with the application period for FIT projects expected to open on
November 4, 2013. This is essentially a renewal of the 2012 FIT resolution passed by Council.
BACKGROUND:
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 applied to energy projects that can generate more than 10 kilowatts of
electricity. The microFIT program applied to energy projects that generate 10 kW or less, and
was 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.
In 2012, the FIT 2.0 Program 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 March 2010 the City
has issued more than 170 commercial and residential building permits for rooftop solar
generation projects valued at $13,960,669.00 (among these, 28 permits were for
commercial /industrial /institutional projects valued at $9,317,231.00). For additional context, the
City's Kitchener Operations Facility solar project installation was issued a $3M building permit.
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 (COSD71 -12 — 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.
REPORT:
In 2013, OPA introduced the FIT 3 Program, with revisions to FIT 2.0, including
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Key changes from the FIT 2.0 Program (2012) to the FIT Program 3 (2013) reflect the policy
decisions of the Minister of Energy as indicated in June 12, 2013 and August 16, 2013,
directions. In addition, several revisions have been made to the draft version of the FIT Program
Rules as a result of feedback received from Municipalities and participating /applicant
commercial enterprises in FIT 2.0:
Only small (10kW- 500kW) FIT applications are allowed, going forward.
• Larger applications (those greater than 500kW) must be made in direct consultation with
the Municipality, which is currently under review by the OPA. A procurement process for
larger renewable energy projects is currently under development, and more details will
be provided on the OPA website ( http: / /fit.powerauthority.on.ca /what - feed - tariff - program)
when they are available.
There were no significant revisions or impact on municipalities and the Priority Point structure,
whereby Municipalities have the opportunity to support solar rooftop projects.
The application period for FIT projects is expected to open on November 4, 2013, and close on
December 13, 2013.
This application period will have a procurement target of up to 123.5 megawatts (MW), which
includes the procurement target of up to 70 MW plus 53.5 MW remaining from the previous
application period.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN
Strategic priorities from the City of Kitchener Strategic Plan 2011 -2014 include:
LEAD BY EXAMPLE: The City of Kitchener can be a model of environmental stewardship
and citizen engagement in that effort.
MAKE LIVING GREEN EASIER: A good, green transportation plan, a citizen - focused
education and awareness program, incentives for green power and water conservation.
PARTNER IN PROTECTING OUR NATURAL ENVIRONMENT Assume responsibility to
ensure appropriate partnering. Federal, provincial and 2 -tier municipal governments with
community partners and citizens as stakeholders.
Community Priority #9. Environment and Health: A healthy environment is critical to sustain the
present and future population of the city. Underpinned by ongoing concerns about issues such
as climate change, air quality and access to green space, Kitchener residents have made it
clear that preserving and protecting the environment should remain one of our top community
priorities - and that we, as a city, should be focusing our plans, our efforts and our dollars on
safeguarding our environment.
FINANCIAL IMPLICATIONS:
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Not applicable.
COMMUNITY ENGAGEMENT:
Communication is not required as the FIT program is administered by the OPA. This report is
made public as part of the Council agenda posted on the City's website.
CONCLUSION:
The FIT 3 Program had developed a point system whereby positive municipal support adds
more weight to a green commercial project, providing opportunity for municipalities to let the
OPA know they support these projects. The more points a project receives, the higher likelihood
the project will secure project approval.
ACKNOWLEDGED BY: Jeff Willmer, Chief Administrative Officer
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