Ontario reduces but does not eliminate domestic content in draft feed-in tariff rules

10 September 2013

The Ontario Power Authority (OPA, Toronto) has released a draft of rules for the third version of the province's feed-in tariff (FIT), including limiting the maximum project size to 500 kW and greatly reducing the proportion of domestically produced equipment required.

Under the draft FIT 3 rules, participating crystalline silicon solar photovoltaic (PV) systems must use a minimum of 22% equipment manufactured in Ontario, and 28% for thin-film PV plants.

The World Trade Organization (WTO) ruled in December 2012 that the domestic content requirement was in violation of its rules and ordered the nation of Canada to compel Ontario to remove the requirement. The domestic content requirement was set at 60% of equipment for PV projects in previous versions of the feed-in tariff.


FIT 3 limited to 30 MW of PV projects

Only 30 MW of PV projects will be eligible to participate in the FIT 3, which will open in November 2013. OPA notes that the province will also launch competitive procurement programs for larger-scale PV projects.

NPD Solarbuzz Inc. (Santa Clara, California, U.S.) estimates that the new program will represent a 25-39% reduction in feed-in tariff rates, depending upon capacity and location.