Community Groups Plug In and Power Up
August 27, 2010 at 10:31 pm
Increasingly, community groups, churches, schools, local businesses and non-profit organizations are embracing renewable energy by tapping in to Ontario’s Feed in Tariff Program.
Motivated by a sense of responsibility to act in the face of climate change, more and more community organizations are building renewable energy systems with the help of Ontario’s MircoFIT and FIT Programs. The Green Energy Act (GEA), passed in May of 2009, has made it easier for community groups to become green energy producers by turning green power initiatives into revenue-generating opportunities. Under the GEA, community power is defined as any renewable energy project that is at least 50% owned, developed and operated by one or more individuals, charities, non-profit organizations or businesses whose business or employment is not primarily based in the energy sector.
Up to $200,000 in new grants available for community power projects
The Community Energy Partnership Program (CEPP), launched in May of this year, provides up to $200,000 in grants to cover up to 90 per cent of eligible development costs for community-led renewable energy projects. Charities, not-for-profits and co-ops will be eligible for the fund as well as projects developed by individual Ontario residents, such as farmers. Operated by the Community Power Fund and Deloitte, with support from the OPA and the Ontario government, the CEPP disburses funds to qualifying projects to cover development and regulatory approval costs of community led, Ontario-based, FIT contract projects between the size of 10kW and 10MW.
Community projects enjoy additional benefits
Under the FIT program, community and First Nation group projects can qualify for a top-up to the FIT rates. The Community Price Adder ranges from +1¢ per kW for solar PV to +.4¢ per kW for biogas projects. This means that a 1 MW rooftop solar PV project, where the community owns at least a 50% stake in the project, would earn about an extra $1000 per year. To qualify for the Community Price Adder, the project must be applied for under the FIT program and not the MicroFIT program.
Faith-based communities are leading the way
Faith-based communities are one type of group that are taking action. As leaders in their communities, churches are raising awareness among their members and the broader community regarding the issues of climate change and showcasing the solution that renewable energy provides by installing solar-systems on their roofs. This trend can be seen in the mandate of inter-faith organizations like the National Religious Partnership for the Environment and initiatives like Greening Sacred Spaces.
Brantford church now harvesting from the sun
EfstonScience recently installed a 10 kW installation on the south-facing roof of the Sydenham Street United Church in Brantford, just outside of Hamilton, Ontario (check out our photo gallery of the installation). The Church’s microFIT contract from the Ontario Power Authority guarantees 80.2¢ per kWh for the power their solar system produces, providing a steady income of over $10,000 annually.
Green initiative inspires congregation
A remarkable $50,000 donation from an anonymous member of the congregation was used to offset the $75,000 cost of the system, bringing the payback period down to two and a half years, after which the Church will earn $10,000 a year in profit. The total revenue for Sydenham will exceed $200,000 for the 20 year duration of the microFIT contract. It is worth noting that even without such a donation, the system still would have provided an attractive return on investment over the 20-year term of the contract.
“Creative” financing helps
In Toronto, the Neighbourhood Unitarian Universalist Church got creative with their fundraising for their 20.91 kW solar PV system, by issuing debentures for half of the $200,000 required for the project. The remaining half was acquired as an interest free loan through the City of Toronto. 110 debentures were available at $1000 each with 5% interest paid annually to the debenture owners – the rest of the profit going to the church.
Are you part of a community that is interested in renewable energy?
With the FIT program, stewardship of the earth does not only make ethical sense, it also makes financial sense. To move your idea forward here are some steps to consider:
This blog post is submitted by Jon Warren from ClearSky Advisiors
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