By installing 3,790 solar panels on three of its Ontario stores, IKEA will generate about 960,000 kilowatt hours of “clean” energy per year, enough to power about 100 homes.

But IKEA’s project won’t just earn it kudos for being a good corporate citizen – the furniture retailer is also earning a new revenue stream. The company will be paid for its solar energy by the Ontario Power Authority through the province’s new feed-in tariff program.

The FIT program was established in 2009 to boost the province’s green energy industry. It works like this: Power producers get premium rates for generating “clean” energy, provided they use Ontario-made equipment and labour. For example, the tariff pays 44 to 80 cents per kilowatt hour for electricity from solar installations, a rate far better than the wholesale price for electricity, which is about four cents per kilowatt hour. Once a contract is approved, it’s guaranteed for 20 years.

Since the FIT program came into being, dozens of solar development companies like AMP Solar Group have sprung up to take advantage of the favourable rates. “Ontario’s feed-in tariff is probably the most aggressive in the world, and has truly created the hottest renewable energy market in the world,” said Dave Rogers, chief executive officer of Port Credit, Ont.-based AMP.

These programs can make things too hot, however. Spain has dramatically scaled back its FIT program because of the costs involved, and if Ontario’s Progressive Conservatives secure power in the fall, leader Tim Hudak promises to cancel the program.

Under Ontario’s program, contracts can be handled in two ways. If the building owner provides the capital for the purchase and installation of solar panels, they also own the revenue stream from the OPA. (This was the case with the IKEA project, which cost the retailer $4.6-million to implement.)

Alternatively, a building owner can lease roof space to a solar development company, which will raise the financing to purchase and install the panels. In this case, the development company gets the FIT revenue and the building owner gets rent payments. It’s a model favoured by Windsor, Ont. company Solar Power Network.

“(Building owners) don’t have to worry about how much power we’re generating, or what kind of panels we’re using, or what our deal is with the Ontario Power Authority,” said Peter Goodman, CEO of Solar Power Network. “They’re literally getting paid to be green, because I’m renting their rooftop.” Mr. Goodman estimates a typical commercial or industrial building would receive about $25,000 in rent per year for the use of a roof.

While steady rental income can be an appealing incentive, sometimes it’s the roofs themselves that benefit from the deal. For example, AMP, in partnership with Potentia Solar, recently won a contract to put solar panels on 450 Toronto District School Board roofs.

As part of the deal, AMP is giving the board all of its rent money upfront so the TDSB can pay for new roofs before the panels go on.

Because the FIT program is still very new, it remains to be seen whether it will be embraced by every Ontario company with a roof. Mr. Goodman said that selling the idea of a 20-year lease to building owners has been tougher than developers expected.

“Many owners are reluctant to make a 20-year lease commitment,” he said. “They want to always have access to do maintenance, and they worry about impairing future building sale potential.”

Many mid-sized and private building owner groups have embraced the program, but larger groups have been slower to make a decision, Mr. Rogers said. “But the expectation is that they intend to make up a big piece of the second wave of the program,” he said.

The Canadian Solar Industries Association announced last week that $1.8-billion of private money has been invested in Ontario solar projects to date, with total investments expected to reach $11.4-billion by 2018.

For its part, AMP Solar has completed 14 projects since the program began in 2009, and it has contracts for 650 more over the next few years, which will account for more than 20 million square feet of rooftop area. Solar Power Network has not yet completed any projects, but is working on 34 and has an additional 120 awaiting approval by the OPA.

But hovering over all of this potential green energy is the spectre of the upcoming provincial election. And even if the conservatives aren’t elected, the FIT program is due to be reviewed in the fall, and tariff rates are expected to drop. If the incentives disappear, so might the solar development companies. In Spain and Germany, government spending cuts put a chill on the solar industry.

“A lot of jobs have been created, a lot of investment has come into the province, especially in a province where manufacturing has declined,” said Mr. Rogers. “We want the renewable energy market to stay in the province and we’re hopeful that it will.”

How it works

Although solar-panel layouts are tailored to each rooftop, some roofs are more desirable than others, says Dave Rogers, chief executive officer of AMP Solar Group.

The idea is 40,000 to 50,000 square feet of flat surface, with little foot traffic, Mr. Rogers says. But that’s only 10 per cent of what’s out there. “The biggest factor is the condition of the roof and its structural capacity. We figure out where the roof is in its life, and if the roof is solar-ready, we just put solar panels on. In most cases it will require some roof work, and we’ll pay for that.”

Once the roof is ready to go, solar panels are installed. They are weighted by ballast to keep them in place – the company tries to avoid making holes in the roof to prevent leaks, and this also makes the panels easily removable in case the building owner needs to make roof repairs.

The panels are then connected to a junction box, and power is fed into the city’s main grid. The amount of energy produced is metered and, for the next 20 years, the panels collect energy with very little maintenance. A 17,000-square-foot building – similar to IKEA’s store in Vaughan, Ont. – would generate about 320,000 kilowatt hours per year, or enough to power 33 homes.

Some companies are experimenting with ways to utilize smaller roofs of 10,000 square feet or less. For instance, Solar Power Network installs panels almost flat, at a 5-degree angle (traditionally panels are positioned at a 30-degree angle to capture the most sunlight). The flatter a panel is, the less ballast it requires, and so this plan is suitable for smaller buildings with more load restrictions.

Shelley White
Globe and Mail Update

Not only does the historic arrangement between the TDSB and Amp Solar Limited Partnership offer green solar energy to the community, it gives the TDSB a no-cost, long-term strategy for replacing millions of square feet of aging roofs.

“Our rooftops represent a major untapped sustainable-energy resource,” said TDSB Chair Chris Bolton. “By installing solar panels on them, Toronto communities will get clean green energy, 450 schools will receive much-needed roof repairs, and TDSB students will experience an unparalleled real-life lesson in sustainable living.”

When fully installed, the panels are expected to generate between 58 and 66 MW of electricity each year, enough to meet the annual needs of 6,000 average Toronto households. The power will be sold into the distribution grid for use by Ontario energy consumers, including TDSB schools.

“This truly is a day for celebration at the TDSB. It’s a win-win-win for everyone involved,” said Director of Education Chris Spence. “This school board has led the way to realizing a greener future with our highly acclaimed EcoSchools program. Now we’re doing it again. This groundbreaking concept is the next step.”

“Due to its educational focus, this is the most important initiative of its kind on the planet,” said Professor José Etcheverry, Faculty of Environmental Studies, York University and President of the Canadian Renewable Energy Alliance. “At 66 megawatts, this astounding project is in the same league as the world’s leading solar projects in Germany and Spain, and represents an historic educational and innovation landmark for public institutions across Canada and North America.”

The project had its genesis in the TDSB’s Go Green: Climate Change Action Plan approved last year. It also supports an Ontario government Strategic Energy Plan directive to provide renewable energy through solar and geo-thermal energy systems.

The number of solar array installations would be determined through the Government of Ontario’s Feed-in-Tariff (FIT) process. Ontario Power Authority (OPA) is expected to respond to school-by-school FIT applications starting in June 2011.

AMP Solar Limited Partnership is a joint venture between AMP Solar Group and Potentia Solar Inc.

For more information, please contact:

Toronto District School Board
Lauren Riley
Communications and Public Affairs
lauren.riley@tdsb.on.ca
416.395.2721

AMP Solar Group
Steve Shaefer
sschaefer@ampsolargroup.com
905.271.7800

“This is a history making award and we are honoured,” said Dave Rogers, President and CEO of AMP Solar Group. “Our recognized expertise in developing, financing and building solar projects on rooftops means we are ready to begin work tomorrow on schools in the Toronto District.”

“Potentia Solar is pleased to be working with AMP Solar Group on this important joint venture,” said Dan Argiros, Chief Executive Officer. “Our strengths complement each other and we look forward to proceeding with this very significant solar build.”

About AMP Solar Group – www.ampsolargroup.com

AMP Solar Group is a solar power producer that develops, builds, owns and operates investment grade solar operating assets in both commercial and government sectors.  AMP Solar Group utilizes leading and bankable technology solutions and global finance expertise to further the advancement of solar development in Ontario.  The AMP team has the recognized experience and capacity which is necessary to deliver to its customer’s world class integrated solar PV rooftop and ground-mount systems.

About Potentia Solar Inc. – www.potentiasolar.com

Potentia Solar is an Independent Power Producer in Ontario generating electricity through its own 100% solar-powered energy systems.  Potentia Solar is supported by respected and well capitalized Canadian companies including Victoria Square Ventures, a wholly owned subsidiary of Power Corporation of Canada, Conundrum Capital Group and MKB Solar Rooftops Inc., an affiliate of MacKinnon, Bennett & Company Inc.

For more information please contact:

AMP Solar Group
Steve Shaefer
sschaefer@ampsolargroup.com
905.271.7800

Potentia Solar Inc.
Lorne Stephenson
lstephenson@potentiasolar.com
416.703.1911

AMP Solar will provide a complete turnkey solution for the York Catholic District School Board (YCDSB) including design, build, operate and maintain over the twenty year term of the FIT program.  The AMP Solar team is extremely pleased to be aligned with such a forward thinking organization.  The YCDSB has been a leader in the energy and energy conservation arenas and this partnership of like-minded groups is a great fit for both sides.  The entire solar development process will be integrated into the school’s curriculum so that students benefit from getting a hands-on perspective of solar technology and installation.

AMP will design, build, operate and maintain rooftop PV systems at IKEA stores in Etobicoke, North York and Vaughn using SANYO technology. Together the systems will have a capacity of 750kW, which is the approximate equivalent of what is needed to power 100 average Ontario homes. The systems will be completed and fully operational by the end of March, 2011. IKEA Canada will be the first retailer to exclusively own, install and operate what is expected to be the largest rooftop solar panel network in Ontario under the Feed-in Tariff (FIT) program.

This is a long term win-win scenario for both organizations according to PSI executives who refer to AMP Solar as one of the most “buttoned-down” solar organizations in the market.  AMP will take on the role of solar project developer focusing most heavily on the procurement and construction aspects of each project.  The solar systems, which leverage Ontario’s Feed-in-tariff (FIT) program are expected to become commercially operational throughout 2010 and 2011.

The branch is part of a pilot program launched by the Bank; the array that is capable of generating close to 75% of the branch’s electricity peak summer demand.  This initiative is part of the Bank’s commitment to the environment and pathway to become one of Canada’s greenest employer’s.

“IKEA Canada is pleased to partner with AMP for the installation of three solar networks. Given AMP’s experience in developing commercial scale solar rooftop solutions, they were a natural choice for IKEA to help us support our renewable energy initiatives.”