FIT
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The Ontario Power Authority has created a performance incentive program to encourage the construction of small to medium size renewable energy generation systems. The OPA has released a detailed Feed In Tariff (FIT) contract offer that states the kW/hr rates payable for various renewable energy generation technologies. The FIT contract also provides a detailed list of conditions that must be met by system developers in order to qualify for the program. Photovoltaic systems have been favoured by the rate structure set by the OPA. Based on the feed in tariff rate of 71.3 cents per kWh for medium-sized (10 - 250 kW) PV systems, projects up to 250 kW nameplate capacity are expected to earn 10% - 14% ROI over the 20 year OPA contract term. The rate of return may be greater for participants who are able to depreciate their capital expenditures against other income.
Investing in renewable energy is capital intensive. Approximately 90% of total project life costs will be incurred before the first kW/hr of electricity is produced. Operating costs are very low, averaging only 0.5% of total project cost per year. Therefore, choosing the appropriate site for your project becomes one of the most significant decisions affecting the overall cost of the installation. Professional due diligence is required to ensure that the project budget will not be exceeded. Project investors and banks will also require a thorough analysis of the site before proceeding with their investment.
Evergreen Power Solutions will deliver a Feasibility Study that examines the critical factors that affect project capital cost, establishes the capital budget and operating cash flow for your project, and begins the FIT Application process. The Feasibility Study will give you and your investors a complete project scope that will help you make the decision to proceed. The study is separated into two phases. Upon completion of the first phase, we will review the results with you before continuing with the second phase. If you choose to proceed with the project and with Evergreen Power Solutions as your developer, Phase 1 of the of the Feasibility study cost will be credited against the total cost of the project.
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