By: Deanna McArthur
The fate of solar rebate programs in Alberta are still undecided as the new UCP government continues to review and assess programs funded by the now defunct carbon tax.
A local solar installer says there’s no reason why the solar industry shouldn’t continue to grow and receive support.
“If you look at what the new government identified as their key priorities – economy and jobs – the good news is that solar is a great contributor to each one,” said Geoff Domenico, President of KCP Energy.
Based on discussions with his fellow Alberta installers and those knowledgeable in the industry, Domenico estimates that there are close to $150 million worth of solar projects that are currently on hold. This is because the government is currently in the process of deciding if it wants to continue funding programs that were previously offered under the banner of Energy Efficiency Alberta (EEA).
“In our case, we have signed contracts or at minimum, letters of intent, for 100% of our projects that are currently being held up,” said Domenico. “These are contracts between our company and farmers, homeowners, and businesses.”
“Let’s not forget contracts that are in place throughout the solar supply chain which could include everyone from solar equipment distributors all the way to manufacturers. Allowing these projects to move forward ensures high value Alberta energy jobs for electricians, engineers, marketing, sales people, and many others are secured into the future.”
Room for Even More Growth
Recently, the US passed 2 million solar installations. The 2 million mark comes three years after installations hit 1 million, a figure it took the industry 40 years to reach. Wood Mackenzie, a world-renowned data collection consultant, is forecasting that installations will reach 3 million in 2021 and 4 million in 2023.
Alberta has seen huge growth in the solar sector over the last couple of years. According to the Alberta Electric Systems Operator microgeneration reports, the number of solar micro-generation sites in Alberta have grown from 1,870 in June 2017, to 3,689 in March 2019.
Based on numbers provided by EEA, Domenico estimates that Alberta is installing about 1,200 systems per year. Although the province has seen impressive growth since 2017, it is not even close to matching the pace of our southern neighbour.
“Alberta would have to expand its growth by about six times to catch up with and be installing at the same pace as what is happening in the States,” said Domenico. “There should be no discussion on reducing or slowing down the solar installations in Alberta. We don’t have time to pause, we are behind and we have a lot of catching up to do.”
Alberta’s solar industry should be focusing on how to grow to meet this huge growth target, and on creating more jobs, while growing Alberta’s economy. We should not be worrying about the impact of paused programs, adds Domenico.
“This is completely in line with the goals of the new government,” said Domenico. “The government is pro business and the solar industry is pro business. It all fits together.”
Finding Synergies in Alberta’s Energy Landscape
It’s not just the solar industry alone that Domenico believes will play an important roll in Alberta’s future; oil, gas, and wind all do their part.
“The new government has the opportunity to highlight and identify all of these great energy sources we have in this province,” he said. “We have oil and gas and we should be doing everything we can to make those energy sources as successful as possible. Additionally, we have great wind and solar resources, and we should be looking at every opportunity to grow these Alberta energy sources as well.”
On the tails of a new report by the Conference Board of Canada that says Alberta could fall back into a recession this year, focusing on how all energy sectors in Alberta can help the province will be more important than ever.
Domenico believes that the four different energy sources, working in tandem, are the next generation Alberta energy equation.
“Oil and solar are not mutually exclusive. We have to move forward by finding a way for all of these different energy technologies to work together,” he said. “Albertans are keen to be a part of all of Alberta’s different energy industries. We need everything firing on all cylinders, in every segment that we have been blessed with in this province. Why are we not doing that?”
Additional Money-Making Opportunities
One of the reasons the solar programs launched under Energy Efficiency Alberta rubbed some Albertans the wrong way is because many believed the government was just doling out free money to those that wanted to put solar on their home, says Domenico.
“In actuality, for a good portion of the programs, the Government retained the rights to the future environmental attributes of the systems,” he said. “Instead of giving away money, the Government was actually buying and now owns these attributes.”
Environmental attributes are renewable energy credits, benefits, or emissions avoided by the installation or implementation of technology. In this case, the technology was PV solar. When micro-generators are generating electricity, this reduces the amount of electricity needed to be generated and shipped to the grid by conventional sources such as coal or natural gas.
According to Domenico, based on the tonnes of emissions avoided through the solar program, environmental attributes now owned by the government are potentially worth millions of dollars in the Alberta carbon market.
Unfortunately, we do not believe the government currently has a system in place to certify or monetize these environmental attributes. This seems like an untapped money-making opportunity for the new government, says Domenico.
“It was pretty exciting when we realized the incentive was not in fact an incentive, but the government purchasing something real and tangible,” said Domenico. “If the government could find an effective way to bundle the small carbon offsets and sell them to high emitters there would be a real income potential there.”
Growing Solar Sector Helping Province Meet its Goals
As part of Alberta’s current Climate Leadership Plan, a goal of having 30% of Alberta’s electricity generation come from renewable energy by 2030 was set. In order to achieve this goal, the Alberta Electric Systems Operator (AESO) held a series of competitive procurements (REP) to encourage the development of new renewable electricity generation in Alberta.
Round 1 of REP was held in 2017 and resulted in four proposed renewable electricity projects, with an aggregate generating capacity of 595.6 MW. These projects will be built and come in service by December 2019.
Rounds 2 and 3 of REP were held in 2018 for projects that will be built and come in service by June 30, 2021. The last two rounds resulted in an aggregate generating capacity of 763 MW.
Taken together, the REP results mean that 1,358.6 MW of new renewable generation will be built in Alberta by June 30, 2021.
But it’s not just large renewable energy companies that are helping with the electricity transition in Alberta, its everyday Albertans as well.
According to Domenico, his clients typically install solar systems which will produce between 70% and 100% of their home’s annual electricity usage. According to Alberta’s micro-generation regulation, any electricity that is generated above and beyond the home’s needs can be sold back to the electricity grid.
The increase in solar installations over the last few years means more green energy being produced overall, further helping to green Alberta’s electricity grid.
Thanks to the introduction of innovative products and services by local companies, those solar installations are having an even larger impact.
The Solar Club, a unique program created with Alberta PV Solar Micro-Generators in mind and offered by a number of local Energy Marketers in Alberta, hopes to encourage even more micro-generation investment in the province.
The Solar Club offers members exclusive electricity retail rates, which are designed to help maximize the profit earned from the excess solar electricity being generated by micro-generators and shipped back into the grid. The Club is a private initiative promoted by Park Power and others – not funded by government taxes.
Club benefits include an annual “cash back” cheque as a customer loyalty benefit. Additionally, 30% of the electricity a Micro-Generator member buys from the grid to supplement what his own solar system falls short in producing is offset with Renewable Energy Certificates (RECs) purchased from Green Alberta Energy; absolutely free. Added on top of this the Club member can also pre-pay their monthly utility in voice using Mastercard and earn points. Joining the club comes at a small cost, members are asked to make a donation to their local food bank.
“Membership has its benefits. This is an innovative program for PV Solar Micro-Generators,” said Nick Clark, Director of Green Alberta Energy. “Earn more, get cash back, help green the grid and lower your monthly utility invoice. Plus if you install solar you are helping employ local installers in Alberta.”
