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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:

• Get informed. Read Mike Schreiner’s open letter to the Minister Energy and Infrastructure.
• Share the news. Share Mike’s letter on facebook with friends and colleagues
• Tell politicians what you think. Click here for a list.
• Organize a press conference or other local action. Click here to join our campaign.
• Write a letter to the editor
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  • 200 words or less
  • Include your full name, city and telephone number

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When the Liberal government introduced the microFIT program in February 2009 Greens celebrated that Ontario would finally begin building a renewable energy system. Immediately local green energy entrepreneurs and community organizations, such as Ottawa’s 1000 Solar Rooftops, got to work bringing clean energy to Ontario ratepayers.

That progress has been put in jeopardy by the McGuinty government’s on-the-fly decision to change the rate for ground based solar power.

Entrepreneurs, business owners, farmers and others in the green energy sector have been blind-sided by the price reduction. Many have already invested thousands in the expectation the government would follow through on its commitments. Instead the Liberal government slashed prices well in advance of the scheduled pricing review in September 2011.

If the government finds it necessary to review pricing now, then at minimum they should honour their word and stand behind their promised pricing for all current applications. It’s time for Green MPPs at Queen’s Park to help restore confidence and trust in government by challenging the Liberals to fulfill their promises.

As I wrote in my letter to the Ottawa Sun, cutting the FIT rate for ground-solar is a move in the wrong direction. We need to apply pressure to the government to get moving back in the right direction.

I would ask you to sign the MicroFIT Action petition today and encourage your friends and family to do the same. It only took me two minutes from start to finish. Grouped together small actions make a difference!

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