Tyler Hamilton provides a great analysis of how the McGuinty government decision to unexpectedly change the feed-in tariff rate has shaken investor confidence in the Ontario energy sector and adversely affected the financial health of family farms.

… So on July 2 – nine months after committing to the 80.2-cent figure – the agency announced it was reducing the tariff for small ground mount systems to 58.8 cents. That decision directly affects 10,700 applications in the queue (2,300 with contracts or conditional offers have been grandfathered under the higher tariff).

The industry was blindsided. Many solar installers that already ordered inventory, put down deposits, and hired and trained staff to meet expected demand are understandably furious. The business cases they had developed relied on the 80.2-cent figure, and now they were being arbitrarily told to swallow a 27-per-cent cut on future revenues.

“The power authority seeded the demand,” said Ian Karleff, managing director of AS Solar Inc., a distributor and developer based in Mount Albert, Ont. “They waved the carrot in front of our noses and then slapped them when we go to bite.”

Read the full article on thestar.com

Support solar energy in Ontario – Stop the MicroFIT tariff reduction: